Competitive interest rates and tax advantages let you make the most of your future retirement.
Roth or Traditional
- Save for retirement with tax advantages1
- Competitive interest on entire balance (contact us at 985-851-2217 for the latest rates)
- Traditional and Roth IRA options
- No setup fees
- CD fixed rate terms range from 6 months to 5 years; $1,000 minimum deposit to open2
- 18-month, variable rate IRA and IRA Savings accounts available; $100 minimum deposit to open3
- Flexible interest payment options:
- Reinvest interest into the CD
- Receive interest by checks
- Transfer to another account
1Consult a tax advisor.
2Penalty for early withdrawal.
3All new savings accounts are subject to a $10 fee if the account is closed within 180 days of opening the account.
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.
- No income limits to open
- No minimum contribution requirement
- Contributions are tax deductible on state and federal income tax1
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59 ½
- Earlier withdrawals subject to penalty2
- Mandatory withdrawals begins at age 70 ½
- Income limits to be eligible to open Roth IRA3
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal1
- Principal contributions can be withdrawn without IRS penalty1
- Withdrawals of interest can begin at age 59 ½1
- Early withdrawals on interest subject to penalty2
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
1Subject to some minimal conditions. Consult a tax advisor.
2Certain exceptions apply, such as healthcare, purchasing first home, etc.
3Consult a tax advisor.
What is a Traditional IRA?
The original IRA (sometimes called an ordinary or regular IRA) is referred to as a "Traditional IRA." The following are two advantages of a Traditional IRA:
- You may be able to deduct some or all of your contributions to it, depending on your circumstances.
- Generally, amounts in your IRA, including earnings and gains, are not taxed until they are distributed.
You can set up and make contributions to a Traditional IRA if:
- You (or, if you file a joint return, your spouse) received taxable compensation during the year, and
- You were not age 70½ by the end of the year.
You can have a Traditional IRA whether or not you are covered by any other retirement plan. However, you may not be able to deduct all of your contributions if you or your spouse is covered by an employer retirement plan.
If both you and your spouse have compensation and are under age 70½, each of you can set up an IRA. You cannot both participate in the same IRA. If you file a joint return, only one of you needs to have compensation.
What is a Roth IRA?
A Roth IRA is an individual retirement plan that is subject to a different set of rules than a Traditional IRA. The account must be designated as a Roth IRA when it is set up. SEP IRAs and SIMPLE IRAs may not be designated as a Roth IRA.
Unlike a Traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, accumulated earnings and qualified distributions are tax and penalty free. Generally, withdrawals of accumulated interest are tax-free if it has been at least 5 tax years since your first contribution to your Roth IRA, and you have reached the age of 59 ½.
Contributions can still be made to your Roth IRA after you reach age 70½, and you can leave amounts in your Roth IRA as long as you live.