- DIGITAL BANKING
|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|
|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)||The year that you reach 72 (70 ½ if you reach 70 ½ before January 1, 2020).||RMDs do not apply|
Earnings accumulate tax-deferred until withdrawn with a Traditional IRA when you make contributions. 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.