Traditional IRAs  

Tax-deferred retirement plans in which taxes are not paid on the money invested or earned until withdrawal.

  • Maximum annual contribution of $7,500 ($8,600 if age 50 or older) or 100% of an individual’s earned income, whichever is less.

  • Term Share account options available.

  • All interest earned is tax-deferred until withdrawal.

  • No IRS penalty for withdrawal at age 59 1/2 and over.

  • 10% IRS penalty for early withdrawal.

  • Please consult with your tax advisor about any and all IRA transactions.

Roth IRAs

A Roth Individual Retirement Account (IRA) is a special tax-free retirement account funded with money you have already paid taxes on. Unlike traditional retirement accounts, a Roth IRA does not force you to take out money (Required Minimum Distributions) during your lifetime.

  • Income tax-free distributions. One of the advantages of the Roth IRA is the income tax-free distributions. A traditional IRA only allows tax deferral. In other words, the government collects its taxes at the time of distribution. Distributions from the Roth IRA are income tax-free if used for a qualified purpose.

  • Qualified distribution reasons. Qualified distributions from a Roth IRA include distributions made for first home purchases (up to $10,000 lifetime), age 59 ½ or older, death, and disability. The distributions must also meet a five-year holding period requirement in order to qualify.

  • The contribution limit for a Roth IRA is $7,500 ($8,600 if age 50 or older), but it must be coordinated with any traditional IRA contribution. Eligible individuals are allowed to contribute $7,500 ($8,600 if age 50 or older) maximum between both the Roth IRA and the traditional IRA.

  • Rollovers from traditional IRAs. Your traditional IRA assets may be rolled into a Roth IRA to take advantage of income tax-free distributions in the future; however, the taxes on the rollover must be paid within that year.

Please consult with your tax advisor about any and all IRA transactions.

Contact our IRA department at (234)-352-1100 for more information on the Roth IRA and Traditional IRAs.