Traditional IRA

A Traditional IRA is easy to maintain, and typically offers two important tax advantages. If you and/or you spouse do not participate in a retirement plan where you work, contributions are typically tax deductible. However if you or your spouse participate in a retirement plan at work you may still be eligible for a full or partial deduction based on your tax filing status and income. Also, every penny of the earnings in a Traditional IRA is 100% free from federal income tax until withdrawn from the account.

Tax-deferred money grows quicker, so money will grow faster in a Traditional IRA

Requirements

• Minimum deposit to open account is $100.
• Additional contributions to an existing CD must be a minimum of $50.
• Transfers and rollovers will be deposited into a new CD.

Features

• Interest will be compounded semiannually, except for certificates of less than one year or when monthly distributions are setup.
• This account automatically renews at maturity.
• Account holders age 59½ or older may adjust to a higher rate once in a calendar year.
• Contributions can be made at anytime into an existing IRA.
• Contributions are limited to a specified dollar amount based on the tax year and if you are under or over age 50.

Distributions

• Distributions can be made without bank or IRS penalty after the age of 59½ or with other qualifying conditions such as death or disability.
• Distributions must begin by April 1 of the year after the year you turn 70½. The taxable portion of what you take out is taxed as ordinary income.

Competitive Edge

• Contributions to Traditional IRAs can be made at anytime to the rate locked in during the current term of the CD.
• CD rates can be increased once during each calendar year for account holders after age 59½.
• Penalty free distributions are permitted for account holders after age 59½ regardless of where the account is in the CD term.

Roth IRA

Contributions to a Roth IRA are not deductible; however, if the funds are distributed in a "qualified distribution" they are not subject to federal income tax. Therefore, the earnings on the Roth IRA are generally tax-free.

Requirements

• Minimum to open account is $100.
• Additional contributions to an existing CD must be a minimum of $50.
• Transfers and rollovers will be deposited into a new CD.

Features

• Interest will be compounded semiannually, except for certificates of less than one year or when monthly distributions are set up.
• Account automatically renews at maturity.
• Money deposited into Roth IRAs is taxed in the year it is earned.
• Contributions are limited to a specified dollar amount based on the tax year and if you are under or over age 50.

Distributions

• Withdrawals of earnings for qualified distribution reasons after a five-year holding period are federal tax free and penalty free.
• Distributions can be made after age 59½ without bank penalty.

Competitive Edge

• Contributions to Roth IRA's can be made at anytime during the term, and will earn the same interest rate as the original deposit.
• CD rates can be increased once during each calendar year for account holders after age 59½.