Waterman Bank Retirement Accounts.
Waterman Bank can help you plan for your future. Use one of these retirement accounts to save for your retirement.
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 $6,000 per year
- Extra $1,000 annual “catch-up” contribution allowed for ages 50+
- $1000 minimum deposit to open
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 features:
- 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 72
Roth IRA features:
- Adjusted gross income must be less than $124,000 to contribute ($196,000 for joint filers)****
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal**
- No mandatory distribution age
- Unlike a traditional IRA, there is no age limit on making contributions, as long as you have earned income
*Consult a tax professional
**Subject to some minimal conditions.
***Certain exceptions apply, such as healthcare, purchasing first home, etc.
****As of 2020; IRS may change figure annually.