Individual Retirement Accounts (IRAs)

Features

  • Potential tax advantages and tax-free retirement earnings*
  • Competitive rates well above average savings account rates
  • Traditional and Roth IRA options available
  • No set-up fees
  • No account maintenance fees
  • Contribution limit of $5,500 per year
  • Extra $1,000 annual "catch-up" contribution allowed for ages 50+
  • $1000 minimum deposit to open

Check out our current rates to compare

*Consult a tax professional

Traditional Roth vs. Roth IRA

What's the difference between a traditional and Roth IRA? Both IRAs may provide tax incentives. Traditional IRAs are tax-deferred, meaning contributions are only taxed at the time of withdrawal. The amount you contribute may be deductible from that year's income tax.

Roth IRAs are tax-exempt. However, you still pay your income taxes in full, regardless of contribution level. Consult a tax advisor to see which IRA is right for you.

Traditional IRA

  • No income limits to open
  • No minimum contribution in any year allowing flexibility
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70½

Roth IRA

  • Adjusted gross income must be less than $135,000 to contribute ($199,000 for joint filers)***
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal*
  • No mandatory distribution age
  • No 70½ age limit on making contributions as long as you have earned income

*Subject to some minimal conditions.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
***As of 2018; IRS may change figure annually.