Waterman State Bank Retirement Accounts.

Waterman State 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.