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You’ve worked hard and earned the right to enjoy your retirement. Northfield can help you securely plan for your future financial needs with our tax-deferred IRA products. All deposits are FDIC insured (maximums may apply).
| Features | Traditonal IRA | Roth IRA |
|---|---|---|
| Minimum Balance to Open | $250.00 | $250.00 |
| Age Requirement | Contribute up to 701/2 | Contribute at any age |
| Income Limitations | None | Your income can affect how much you can contribute |
| Tax Deductible | Yes | No |
| Early Withdrawal Penatly | If you make withdrawals before you're 591/2, your might have to pay a 10% penalty. | If you make withdrawals before you're 591/2, you might have to pay taxes on your earnings plus a 10% additional tax. |
| Required Minimum Distributions (RMDs) | You must begin taking RMDs no later than April 1 of the year following the year to turn 701/2. | RMDs do not apply |
Earnings accumulate tax-deferred until withdrawn with a Traditional IRA when you make contributions (before age 701/2). What does that mean? It means your money grows and you don’t need to pay taxes on it until you take it out of the IRA. Neat, right?
With a Roth IRA, you can contribute at any age, and your money grows tax-deferred. A Roth IRA features tax credits, which means you may be eligible for a dollar-for-dollar reduction in your taxes, and you can also enjoy tax-free withdrawals (when you withdraw contributions first).(1)
Speak with a personal banker at your local branch who will give you one-on-one attention and help you decide which option works best for you.
(1) Be sure to speak to your tax advisor about your individual tax situation.
