Individual Retirement Accounts (IRAs) offer individuals with earned income the opportunity to save for their retirement while often enjoying tax benefits for doing so. The IRS sets contribution limits for IRAs each year. Our Personal Banking Team and/or your tax advisor can also help walk you through how IRAs work and help you decide which type of IRA may be best for you.

Traditional IRA 

Contributions to a Traditional IRA may be deductible from your current year's income taxes. Earnings on Traditional IRAs grow tax-deferred until funds are withdrawn from your account. The IRS allows penalty-free withdrawals from a traditional IRA after age 59-1/2. Individuals are required by the IRS to begin taking distributions from their Traditional IRA the year they turn age 70-1/2.

Roth IRA

With a Roth IRA, contributions are made after-tax and therefore are not deductible. Earnings, however, grow tax-free. Distributions are not required for Roth IRAs and you may withdraw contributions at any time without penalty. Earnings may be withdrawn tax and penalty free after five years.

Coverdell Education Savings Accounts (CESA) 

CESAs are a type of IRA that allows parents as well as family members, other individuals, and corporations to invest for a child's future education expenses on a tax-favored basis. Contributions are not tax deductible, however withdrawals are tax- and penalty-free for qualified education expenses such as tuition, books, supplies, room and board, and transportation. Earnings are subject to taxes and penalties for other withdrawals.

IRA Investment Options

Choice Bank offers a variety of investment terms from 3 months to 5 years. Funds deposited are guaranteed the principal plus a fixed rate of return for the duration of the term.  

Contact us to learn more about investing in an IRA Certificate of Deposit for your Traditional IRA, Roth IRA, or Coverdell Education Savings Account today.