Individual Retirement Account (IRA)
Save for retirement today!
Open an account online or at a convenient banking center.An Individual Retirement Account (IRA) is a popular retirement plan that provides tax-advantaged savings for retirement. An IRA can be used as an effective way to supplement other long-term savings vehicles.
Regardless of which IRA you choose, your money grows tax-deferred and is insured up to the applicable limits provided by the Federal Deposit Insurance Corporation (FDIC).
IRA Savings Account - Get your savings started!
An IRA Savings Account offers you a smart way to get started saving for retirement. Begin with as little as $25. Make regular contributions that fit your budget. Arrange direct deposit or automatic transfer of your contributions to make it even easier to save.Check out this big PLUS:
If you make at least 24 automatic transfer contributions into your IRA Savings account per year, you will earn a higher rate of interest for the next calendar year. Ask a banker for more information about this opportunity.
Open an account today.
IRA-CDs: A great retirement savings strategy!
An IRA-CD works just like any Certificate of Deposit to guarantee the growth the money in your IRA. Regardless of which IRA-CD term you choose, your money increases tax-deferred. It earns a fixed interest rate for a fixed timeframe that can range from 7 days to 10 years.
Your IRA-CD renews automatically, until the time you begin withdrawing funds. And it’s insured up to applicable limits determined by the Federal Deposit Insurance Corporation (FDIC).
IRA Investments
Ask a 1st Source banker or advisor for more information about IRA Investments.
Types of IRAs
There are three different types of IRAs with different features, benefits and rules.
Traditional IRA
- Contributions may be tax-deductible in the year they’re made.
- Save now, pay later: your money grows tax-free until you begin taking distributions, at which time you’ll pay taxes on both your contributions and your earnings.
- Anyone who has an earned income can invest in a Traditional IRA-CD.
- Consult your tax advisor for more information.
Roth IRA
- Contributions are not tax-deductible, but distributions are generally tax-free. Anyone who has an earned income can invest in a Roth IRA – there are no age restrictions, since contributions are funded with after-tax dollars.
- Participation in a 401(k) plan isn’t a factor in determining contribution amounts.
- Consult your tax advisor for more information.
Coverdell Education Savings Account (ESA)
- Contributions are not tax-deductible.
- Withdrawals are tax-free when used for a child’s qualified higher education expenses.
- Consult your tax advisor for more information.