Individual Retirement Accounts

Prepare for Retirement

NOW is the best time to save for retirement.

Whether you are 25 or 55, taking action now to prepare for your retirement is essential. Time Federal Savings Bank makes it easy by offering two different FDIC Insured Individual Retirement Account options – Traditional IRAs and Roth IRAs – each with their own benefits. We offer competitive rates and accounts to fit everyone’s needs. IRAs are FDIC insured up to $250,000 seperatly from your other deposits.

 

Traditional IRA:

  • Available in 1,2,3,and 4 year fixed rate certificates
  • Available in a 2 year variable rate certificate
  • Available as passbook savings account(s)

Benefits of a Traditional IRA*

  • Anyone who earns income can contribute to a Traditional IRA until age 70 ½
  • Contributions to the account are tax deductible for qualified individuals on both state and federal tax returns for the tax year you make contributions
  • Contributions can lower your taxable income, meaning you may qualify for other tax incentives
  • Up to $10,000 may be withdrawn for qualified first-time homebuyer expenses without incurring the standard IRS 10% early withdrawal penalty (however, you will pay taxes on the withdrawal)
  • The required withdrawal age is 70 ½

NOTE:  Time Federal certificate early withdrawal penalties may apply.

*Please consult with your tax advisor concerning the deductibility of deposits.

 

Roth IRA:

  • Available in 1,2,3,and 4 year fixed rate certificates
  • Available as passbook savings account(s)

Benefits of a Roth IRA*

There are various benefits when you select a Roth IRA:

  • Contributions can still be made after you reach age 70 ½
  • Qualified Distributions are tax and penalty-free
  • After age 59 ½ and if the account has been opened for five years or more, earnings can be withdrawn IRS tax and penalty-free
  • No required withdrawal date, so your beneficiaries can inherit the account if you please
  • Contributions (but not earnings) can be withdrawn tax and penalty-free any time, 10% early distribution tax may apply
  • Five years after your first contribution, up to $10,000 of earnings can be withdrawn IRS penalty-free for qualified first-time homebuyer expenses

NOTE:  Time Federal certificate early withdrawal penalties may apply.

 

 

Simplified Employee Pensions (SEP) traditional IRAs are also available to small business employers.  Check with your business accountant to see if a SEP IRA would work for your small business.

You can start the process to open an IRA account today by using our online Deposit Account Application!   Please contact one of our Time Federal savings representatives for current rates and more information.

*Time Federal Savings Bank and its staff members are not tax professionals. For full details on the tax benefits of IRAs, please contact your tax advisor.