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.