Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

Summary

Setting up an IRA is an easy — and tax-advantaged* — way to act on your retirement dreams. Plus, with different options to choose from, Traditional, Roth, or Educational, your savings plan is tailored to your financial situation.

Details:

  • Build savings for your retirement
  • Earn competitive dividends above standard savings rates
  • Enjoy tax-advantages*
  • Choose between Traditional, Roth, and Educational based on your needs
  • Short and long term options available
  • $5,500 annual contribution limit (as of 2013)
  • Annual $1,000 "catch-up contribution" allowed for ages 50+
  • $500 minimum deposit to open
  • Personalized service right here in Washington

See our rates.

*Consult a tax advisor.

Traditional vs. Roth

When choosing an IRA, it's important to know the differences between them and how they each affect your personal situation. Perhaps most important, with a traditional IRA, you pay taxes later upon withdrawal. With a Roth IRA, you pay taxes now, upon your contributions.*

Traditional IRA

  • Earnings are tax deferred until withdrawal
  • $5,500 annual contribution limit (as of 2013)
  • Contributions are tax deductible*
  • Annual $1,000 "catch-up contribution" allowed for ages 50+
  • Early withdrawals subject to penalty
  • Penalty-free withdrawals may begin at age 59½
  • Mandatory withdrawals begin at age 79½

*Consult a tax advisor.

Roth

  • Earnings are tax-free*
  • $5,000 annual contribution limit
  • Contributions are NOT tax-deductible
  • Annual $1,000 "catch-up contribution" allowed for ages 50+
  • Early withdrawals subject to penalty
  • Principal may be withdrawn penalty-free
  • Withdrawals may begin at age 59½
  • No mandatory withdrawals

*Consult your tax advisor.



Educational
  • Coverdell education savings account
  • No age or compensation requirements to open and contribute
  • Interest grows 100% tax-free
  • Tax-free withdrawals when used for qualified education expenses**
  • Contributions are NOT tax deductible
  • Can be made up until the student is age 18
  • $2,000 maximum annual contribution per student
  • Funds must be distributed when the recipient reaches age 30
  • Contributors do not need to be related to the student

*Consult your tax advisor.

**Qualified expenses include tuition, fees, books, supplies, board, and more.