Individual Retirement Accounts (IRAs)

• Competitive interest above standard savings rates
• Traditional and Roth IRA options
• No setup fees
• No monthly or annual maintenance fees
• Potential tax advantages¹
• $6,000 contribution limit per year, will increase to $6,500 for 2023
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to purchase CDs within IRA
• $100 minimum deposit to open

¹Please consult a qualified tax professional as certain exceptions may apply. For more information please visit irs.gov.

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at 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 72

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• Principal contributions can be withdrawn without penalty¹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 age
• 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.

Self-employed individuals and small business owners can utilize a Simplified Employee Pension (SEP) plan to gain tax advantages while saving for retirement.

• Available to any size business, including self-employed individuals
• Contribute to own retirement as well as employees
• Contributions are tax deductible¹
• Flexible annual contribution (percentage you choose is not locked)
• Employer must contribute equally for all eligible employees
• Possible tax credit for opening a new SEP plan
• Gain employee satisfaction with attractive retirement plan

¹Please consult a qualified tax professional as certain exceptions may apply. For more information please visit irs.gov.