Traditional IRA
Save for retirement with tax-deductible contributions. A Traditional IRA may be the right choice if you aren't eligible for a Roth IRA or if you expect to be in a lower tax bracket in retirement.
- Minimum deposit: $5.00
- Dividends higher than other savings products
- Your contributions may be fully or partially tax-deductible1
- Earnings aren't taxed until you withdraw
- Tax penalties may apply if you withdraw early2
Roth IRA
Make withdrawals in retirement without being taxed. You may benefit from a Roth IRA if you expect to be in a higher tax bracket when you retire. Roth IRAs also offer an advantage over certificate accounts, as they allow withdrawals without penalties.
- Minimum deposit: $5.00
- Dividends higher than other savings products
- Contribution limits may apply3
- When you withdraw, neither contributions nor gains/earnings are subject to federal income tax.
- Tax penalties may apply if you withdraw early2
To open an IRA account in-person, schedule an in-branch appointment.
IRA Rates
1IRS rules state that your deduction may be limited if you (or your spouse, if you're married) are covered by a retirement plan at work and your income exceeds certain levels. Your deduction is allowed in full if you (and your spouse) aren't covered by a retirement plan at work.
2Early Withdrawal Penalty: In order to avoid tax penalties by the IRS, you must wait until you are age 59 ½ to withdraw funds or be able to demonstrate your withdrawal is being used for qualified higher education expenses or a first-time home purchase. Roth IRA holders must also satisfy a minimum five-year holding period. If a person takes funds out of an IRA before age 59 ½ for purposes other than qualified higher education expenses or the first-time purchase of a home, this is a "premature" distribution and a 10 percent penalty may be assessed by the Internal Revenue Service (IRS). Premature distributions are also subject to income tax. There are some additional, special circumstances such as death, permanent disability, mental incompetence and certain medical expenses that allow funds to be withdrawn without a 10 percent premature penalty. After age 59 ½, an individual can withdraw funds whenever requested and in any amount without incurring tax penalties.
3Your Roth IRA contribution might be limited based on your filing status and income.
*APY = Annual Percentage Yield current as of March 18, 2019. Rate subject to change at any time without notice. Fees and penalties can reduce earnings on the account.
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