Individual Retirement Accounts (IRAs)

• Tax-advantaged retirement savings*
• Competitive interest above standard savings rates
• Traditional and Roth IRA options
• No setup fees
• No monthly or annual maintenance fees
• $5,500 contribution limit per year
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• $100 minimum deposit to open

*Consult a tax advisor

Traditional and Roth IRAs both offer tax incentives* to ease the strain on your retirement saving. How do they work? See this quick breakdown to highlight distinct differences between the two. And consult a tax advisor to determine which IRA is right for you.

Traditional IRA

• 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 70½

Roth IRA

• Adjusted gross income must be less than $125,000 to contribute ($183,000 for joint filers)***
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal*
• No mandatory distribution age
• No 70½ age limit on making contributions as long as you have earned income

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

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

***As of 2012; IRS may change figure annually.