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Individual Retirement Accounts

Prepare for Retirement

An Individual Retirement Account, commonly known as an IRA, is an opportunity to save money for your retirement. Whether you are 25 or 55, taking action now to prepare for your retirement is essential. We offer Traditional IRAs and Roth IRAs – each with their own benefits but are intended to be left alone until you hit the withdrawal age of 59½ year old.  IRAs are FDIC insured up to $250,000 separately from your other deposits.

Below are the Contribution Limits for both Roth and Traditional IRAs:

2018

  • $5,500 or $6,500 if you are 50 years or older
  • Your taxable compensation for the year, if your compensation was less than this dollar limit

2019

  • $6,000 or $7,000 if you are 50 years or older
  • Your taxable compensation for the year, if your compensation was less than this dollar limit

Traditional and Roth IRA:

  • Available in 6, 12, 18, 24, 36 or 48 month fixed rate Certificates of Deposit
  • Available in a 2 year variable rate certificate
  • Available as savings account(s)

Benefits of a Traditional IRA*

  • Any contributions to a Traditional IRA are tax-deferred on your principal and earnings until they are withdrawn.
  • Contributions can be tax deductible.
  • To contribute to a Traditional IRA, you must have earned income.  

NOTE:  For Certificates of Deposit, early withdrawal penalties may apply.  *Please talk with your tax consultant for more details.  The required withdrawal age is 70½ years.

Benefits of a Roth IRA*

  • Roth IRA is a great option for tax-free income in retirement as the contributions are taxable income upfront
  • Contributions can still be made after you reach age 70½ years.
  • Qualified Distributions are tax and penalty-free

NOTE:  For Certificates of Deposit, early withdrawal penalties may apply.  *Please talk with your tax consultant for more details.  

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

 

Business SEP Option...

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.

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