Individual Retirement Accounts (IRAs)

Retirement may be here before you know it, but it won’t be here before you’re ready when you grow your savings with an FDIC-insured Individual Retirement Account¹. Choose the plan that’s right for the way you live today and the way you want to live when you walk out of the office and into your first day of retirement. View our current IRA rates and use the below information to help guide you before opening a retirement account.

Traditional IRA

• All contributions may be fully or partially deductible based on your tax filing status and income¹
• You’ll save on taxes now, but pay later when you make required withdrawals
• You can contribute at any age if you have earned income
• Your annual contribution limits are set by the IRS and include a catch up amount for those age 50 and older¹
• Required Minimum Distributions (RMD) must begin at age 72

Roth IRA

• You’ll pay taxes on your contributions now, but enjoy tax-free qualified withdrawals later¹
• Contributions are never tax-deductible
• You can contribute at any age if you have earned income below the IRS threshold¹
• Your annual contribution limits are set by the IRS and include a catch up amount for those age 50 and older¹
• There is no mandatory distribution at any age

Comparison chart of Traditional and Roth IRAs

Simplified Employee Pension (SEP) IRA

• Contribution eligibility is limited to self-employed individuals and to eligible employers on behalf of their employees – no age ceiling
• Your annual contribution limits are set by the IRS and are normally substantially higher than the limits for Traditional and Roth IRAs¹
• You’ll save on taxes now, but pay later when you make withdrawals
• Required Minimum Distributions (RMD) must begin at age 72 even if you still have earned income

Once you’ve determined the best plan for your future, choose an IRA certificate of deposit or savings account:

IRA Certificates of Deposit (CDs)

• A Traditional IRA CD is a tax-deferred account that provides the benefits of a Traditional IRA (tax-deductible contributions, tax-deferred growth, FDIC insurance, etc.) and a CD account (fixed rate of interest, higher returns, set maturity date, etc.).
• A Roth IRA CD is a tax-exempt account that provides the benefits of a Roth IRA (tax-free growth, no required minimum distributions, etc.) and a CD account (fixed rate of interest, higher returns, set maturity date, etc.).
• Open your retirement account with a minimum balance of $500 for any term from 90 days to 60 months
• Watch your investment grow with a fixed rate of interest for the duration of the term
• Any additional deposits may only be made during the 10-day grace period following the maturity date

IRA Savings

• With a low minimum balance to open and no bank early withdrawal penalty, the IRA Savings account offers benefits perfect for someone who is just starting to think about retirement or someone who may be looking for an alternative to the IRA CD.
• IRA Savings accounts can be Traditional or Roth
• Open your retirement account with a minimum balance of $25. Additional contributions of at least $25 may be made at any time, up to your annual maximum eligibility amount

IRA deposits are insured separately from other deposit accounts for FDIC insurance coverage, up to $250,000 for all IRAs owned by the same person at the same bank.

¹ Intended for informational purposes only. See IRS Publication 590 for further details or consult your tax advisor. Nation Choice Reserve does not offer tax or legal advice.