Personal Banking
Savings Accounts
IRA
An IRA is a personal tax shelter retirement savings plan. Millions of American workers are using IRAs to reduce their taxes and build a more secure future for themselves and their families. For federal income tax purposes, contributions to your IRA are deductible depending on your adjusted gross income and whether you are covered by a qualified retirement plan. You may make deductions even though you do not itemize other deductions. During the years the plan is in force, earned interest is also added to your IRA and these earnings are also tax deferred. Compounding of the interest over the years generates more dollars to build a retirement significantly larger than would be possible with taxed dollars. In addition, you could realize a further benefit because your IRA contribution may put you in a lower tax bracket. Also at the time distributions begin, most individuals are in a lower tax bracket. You may start receiving distributions at age 59 1/2 and you must start taking distributions at 70 1/2. Distributions prior to age 59 1/2 may be subjected to a tax penalty. Be sure to consult your tax advisor regarding deductibility and taxes on distributions.
The Roth IRA & the Coverdell Educational IRA are available also.
