Individual Retirement Accounts

Individual Retirement Accounts or IRAs are a way for individuals to save for retirement. Choose from a full range of IRAs with competitive rates and flexible options. Transfer your current IRA or rollover your 401(k) from your employer or prior employer to the bank you know and trust.

• Minimum balance of $250
• $10 annual maintenance fee
• Interest paid quarterly
• Early withdrawal penalties and tax penalties may apply
• Deposits allowed at any time (subject to approval and must be within IRS guidelines)

Traditional IRA

The money put into a Traditional IRA may be tax deductible and the account grows tax deferred. At the age of 59½ the funds can be used without penalty. Early withdrawals (prior to age 59½) are taxable and incur 10% premature-distribution penalty fee to the IRS. At the age of 73 you are required to start taking minimum distributions from the account and contributions are no longer allowed. Tax deductible contributions may be subject to income taxes upon withdrawal.

Roth IRA

The money put into a Roth IRA is not tax deductible but it does grow tax free. Certain distributions after 5 years are tax free. You can start withdrawing the funds at the age of 59½ without penalty and you are never required to withdraw the money. Early withdrawals (prior to age 59½) are taxable and incur 10% premature-distribution penalty fee to the IRS.

SEP IRA

A SEP or a Simplified Employer Plan is an IRA established by an employer on behalf of an employee. Each year, the employer can contribute a certain percentage of each eligible employee's compensation directly to the employee's traditional IRA. A SEP IRA gets all the same great tax benefits as a Traditional IRA.

CESA

The CESA or Coverdell Education Savings Account is a nondeductible account that qualifies for tax-free withdrawals for a child's education expenses-children younger than 18 years old. Earnings grow tax-free when used for qualified education expenses, including private elementary and secondary schooling, and higher education through a vocational school, college or university.

Contact a Personal Banker for current interest rate schedule.
Consult your tax advisor or financial planner for more information.