Individual Retirement Accounts (IRAs)

• Tax-advantaged retirement savings*
• Competitive interest above standard savings rates
• Traditional and Roth IRA options
• No setup fees
• No monthly or annual maintenance fees
• Annual contribution limits apply (see current contribution limits; $6,000 as of 2019)
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Interest can be reinvested into CDs, added to a Classic Bank demand deposit account, or paid out by check
• $1,000 minimum deposit to open

*Consult a tax advisor.

When would you like to enjoy your tax advantage? A traditional IRA can provide tax relief today, while a Roth IRA has the potential for the most tax benefit at the time of retirement.

Traditional IRA

• No income limits to open
• No minimum contribution requirement
• Contributions are tax deductible on state and federal income tax¹
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59½
• Early withdrawals subject to penalty²
• Mandatory withdrawals at age 70½

Roth IRA

• Income limits to be eligible to open Roth IRA³
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal¹
• Principal contributions can be withdrawn without penalty¹
• Withdrawals on interest can begin at age 59½
• Early withdrawals on interest subject to penalty²
• No mandatory distribution ages
• No age limit on making contributions as long as you have earned income

¹Subject to some minimal conditions. Consult a tax advisor.

²Certain exceptions apply, such as healthcare, purchasing first home, etc.

³Consult a tax advisor.