Traditional Individual Retirement Accounts
Traditional IRAs are interest-bearing retirement investments that are tax deferred until you begin withdrawals. Similar to CDs, IRAs are FDIC-insured and offer guaranteed returns despite market changes. Traditional and Roth IRAs are the most common, but your lifestyle and financial goals — as well as your age and income — will help determine which IRA is right for you.
A Traditional IRA is often desirable if your income level is higher than a Roth IRA’s requirement, and you expect to be in a lower tax bracket when you retire. If you are not covered by an employer-backed retirement plan, contributions to a Traditional IRA could be tax deductible, depending upon your income and tax filing status.
Unlike a Roth IRA, there is a maximum age to contribute (70 ½) and minimum distributions are required. However, withdrawals are penalty-free at age 59 ½.
Bank SNB’s $15 annual fee is waived if you also have a Relationship Checking account.
Explore our retirement calculators, or call 888.762.4762 for more information about the IRA that’s right for you.
All questions regarding tax deductions and withdrawal limits for taxable purposes should ALWAYS be discussed with a tax advisor.