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photoIndividual Retirement Accounts

It's never to early to save for the future. An IRA is a personal savings plan that provides income tax advantages to individuals saving money for retirement purposes. Our goal is to help make sure your savings last as long as you do. Bank on a conservative strategy with predictable earnings to help maximize savings and build your nest egg. Live your dreams...invest for your retirement.

IRS Announces IRA Rollover Rule Game Changer for 2015:
Effective January 1, 2015, the IRS will begin enforcing a new interpretation of the rule that limits the number of nontaxable IRA rollovers. Previously, the IRS allowed one rollover per 12-month period from each IRA an individual owned. Based on the new tax code and subsequent ruling by the U.S. Tax Court, IRA owners will be allowed to complete only one IRA-to-IRA rollover per 12-months. Regardless of how many IRAs they own. Please contact a tax consultant should you have questions regarding this new rule.


VARIABLE IRA SAVINGS:

A Resource Bank Exclusive. Smart savings that earn interest more often than a CD.

  • $50 minimum to open
  • No maturity
  • Unlimited deposits allowed*
  • No withdrawal penalty**
  • Capitalize interest every 3 months
  • Traditional, ROTH and SEP IRAs available

IRA CDs:

Increase your savings with predictable interest earnings. A long time favorite.

  • $1000 minimum to open
  • 12 month fixed term
  • 24 month step-up term***
  • Deposits can be made at maturity
  • Penalty for early withdrawal**
  • Traditional, ROTH and SEP IRAs available
  • Automatically renewable

*Deposits allowed up to federal IRA guidelines
**Except those set forth by federal guidelines
***Interest rate and yield may be subject to change after account opening.

IRA Frequently Asked Questions:

  • What is an IRA?

An IRA is an INDIVIDUAL RETIREMENT ACCOUNT. An IRA is a personal savings plan that provides income tax advantages to individuals saving money for retirement purposes.

  • How does it work?

You invest money in an IRA, up to the amounts allowable under the tax law. These investments are termed "contributions." In many instances an income tax deduction is available for the tax year for which the funds are contributed. The contributions, as well as the earnings and gains from these contributions, accumulate tax-free until you withdraw the money from the account. You therefore enjoy the ability to generate additional earnings, unreduced by taxes on these earnings, each year the funds remain within the IRA.

  • Who is eligible to open an IRA?

Any individual can open and make contributions to a traditional IRA, as long as you, or your spouse (if you file a joint return), received taxable earned compensation during the year and you were not 70 ½ years old by the end of the year.

  • What are the contribution limits?

For 2014 and 2015, the maxium you can contribute to all of your traditional and Roth IRSs is the smaller of: $5,500 ($6,500 if you are age 50 or older), or your tazable compensation for the year.

YEAR

AGE 49 & BELOW

AGE 50 & ABOVE

2014 and 2015 $5,500 $6,500

Due to the tax advantages of investing through an IRA, it is normally best to try and make the maximum annual contribution. The use-it-or-lose-it nature of contributions makes this all the more important (e.g., If you deposit $3,000 in 2014, you can't deposit $8,000 in 2015 [the $5,500 + the $2,500 you didn't deposit the year before]. You cannot contribute more than the total allowable amount during any fiscal year.)

2014 Combined Traditional and Roth IRA Contribution Limits per www.irs.gov:

  • What about my 401(k)?

If you are contributing the maximum annual amount to your 401(k), IRAs may be your next best investment option for retirement, and are available to anyone with earned income.

  • How are Traditional and Roth IRAs different? 

Any earnings in a Roth IRA are federally tax free. Earnings in a Traditional IRA are tax-deferred until withdrawn in retirement when they are taxed at your current rate.  Contributions to a Roth IRA can be withdrawn at any time. Withdrawals from a Traditional IRA before the age of 591/2 are subject to a 10% federal penalty.  Anyone with earned income under the age of 701/2 can contribute to a Traditional IRA. Roth IRAs are restricted to those who do not exceed certain modified gross income limits.  Traditional IRA contributions may be tax deductible. Roth contributions cannot be deducted.

  • What is a SEP - Simplified Employee Pension? 

This is an employer established and funded Simplified IRA, where the employer can put up to 15% of your compensation into a special IRA account. Sole proprietors, the self-employed, may establish these plans for their own benefits.

*The above information is a general overview.  Please contact your financial advisor or tax specialist for detailed information. For detailed information on IRAs, visit www.irs.gov and enter IRA in the search bar.

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