Individual Retirement Accounts (IRAs)

• Tax-advantaged retirement savings*
• Competitive interest above standard savings rates 
• Traditional and Roth IRA options 
• No setup or administrative fees
• No monthly or annual maintenance fees 
• Annual contribution limits apply (see current contribution limits; $6,000 as of 2020)* 
• Additional $1,000 "catch-up" contribution allowed for ages 50+ 
• Funds can be used to purchase CDs within IRA 
• $2,500 minimum deposit to open 

*Consult a tax advisor. 

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement. 

Traditional IRA 

• No income limits to open 
• No minimum contribution requirement 
• Contributions are tax deductible on state and federal income tax² 
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket) 
• Withdrawals can begin at age 59½ 
• Early withdrawals subject to penalty³ 
• Mandatory withdrawals at age 72   

Roth IRA 

• Income limits to be eligible to open Roth IRA¹ 
• Contributions are NOT tax deductible 
• Earnings are 100% tax free at withdrawal² 
• Principal contributions can be withdrawn without penalty² 
• Withdrawals on interest can begin at age 59½ 
• Early withdrawals on interest subject to penalty³ 
• No mandatory distribution age 
• No age limit on making contributions as long as you have earned income   

¹Consult a tax advisor. 

²Subject to some minimal conditions. Consult a tax advisor. 

³Certain exceptions apply, such as healthcare, purchasing first home, etc.