Retirement is inevitable. By saving up early with a traditional or Roth IRA, you can make sure it’s the one you deserve.
Key Features
-
Competitive Interest
-
No Setup Fees
-
No Monthly or Annual Fees
-
Tax Advantages
1
- Competitive interest above standard savings rates
- Traditional and Roth IRA options
- No setup fees
- No monthly or annual maintenance fees
- 2019 Contribution limit: $6,000; 2020 Contribution limit: $6,000
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Funds can be used to purchase CDs within IRA
- $100 minimum deposit to open Money Market Investor IRA
- $500 minimum deposit to open IRA CD (contributory or non-contributory)
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. Learn more about the differences below.
| Traditional IRA | Roth IRA | |
| Tax Effect2 |
|
|
| Contribution Limits for 2019 | 100% of earned income up to $6,000 (or $7,000 if age 50 or over) reduced by Roth IRA contributions | 100% of earned income up to $6,000 (or $7,000 if age 50 or over) reduced by Traditional IRA contributions |
| Contribution Limits for 2020 | 100% of earned income up to $6,000 (or $7,000 if age 50 or over) reduced by Roth IRA contributions | 100% of earned income up to $6,000 (or $7,000 if age 50 or over) reduced by Traditional IRA contributions |
| Contribution Deadlines | Prior year contributions (for 2019) may be made between January 1st - April 15th, 2020 Current year contributions may be made from January 1st - December 31st, 2020 | Prior year contributions (for 2019) may be made between January 1st - April 15th, 2020 Current year contributions may be made from January 1st - December 31st, 2020 |
| Eligibility | Individuals under the age of 70 ½ who have earned income | Individuals who have earned income and fall with the Modified Adjusted Gross Income (MAGI) limits |
| Minimum Distribution Requirements | Required minimum distributions must be taken beginning the year in which an individual turns 70 ½ | None |
| Transfers | IRA funds may be transferred from an existing Traditional IRA at another financial institution to Tri City National Bank | IRA funds may be transferred from an existing Roth IRA at another financial institution to Tri City National Bank |
| Rollover | Funds from an Employer Sponsored Retirement Plan (i.e. 401(k) Plan) or Traditional IRA may be moved into a Traditional IRA | Funds from an Employer Sponsored Retirement Plan (i.e. 401(k) Plan) or a Roth IRA may be rolled into a Roth IRA |
1For more information about your potential tax advantages or liabilities, consult with a certified tax professional about what rules apply to your particular financial situation.
2You may receive tax benefits as a result of contributing to an IRA or penalties for early withdrawals. Withdrawals made prior to age 59½ may subject you to tax liabilities and penalties. For more information about your potential tax advantages or liabilities, consult with a certified tax professional about what rules apply to your particular financial situation.