Bank Traditional IRAs
- If you like complete safety, you may establish an IRA using a CD as the investment vehicle
- The primary benefit is that most investments are pre-tax and grow on a tax-deferred basis
- The contribution may be deducted from taxable income, subject to limitations
- You don’t pay taxes on them until after you begin making withdrawals
- You can withdraw assets from your IRA without a 10% early distribution penalty tax any time after you reach age 59 ½
- Once you reach age 70 ½, required minimum distributions must be withdrawn from an IRA annually
- Your money is FDIC insured up to $250,000 and grows for when you need it
Bank Roth IRAs
- This is very similar to a Traditional IRA, but you invest after-tax dollars
- The contribution to this account is NOT deducted from taxable income, but the withdrawals are tax-free after a specified period
- Distributions from these accounts are not taxable as long as the account has been open for five (5) years and the individual has attained the age of 59½ or takes a "qualified special purpose" distribution
- There is an income limit for contribution eligibility
- After that, any earnings you withdraw for a qualified distribution reason are income tax and penalty free
- No minimum annual withdrawals are required at any age
Bank Simplified Employee Pension (SEP) IRAs
- SEPs are available for funding by business owners in order to provide retirement benefits for both business owners and employees
- Since SEP accounts are treated as IRAs, funds can be invested the same way as any other IRA
Advantages of a Bank IRA
Congress established IRAs to encourage individuals to save for their own retirement, with several tax advantages. That’s why in most cases you can’t withdraw the money without penalty until you reach the age of 59 1/2. CD-funded IRAs offer stable investment opportunities.
Consult your tax advisor to see if one is right for you.
At Bank of Hazelton we guarantee…
- No annual fees, commissions or hidden charges
- No risk -- FDIC insured up to $250,000
- Tax deferred earnings -- so your money grows faster (See your tax advisor)
- Your retirement funds stay local
If you need help choosing which IRA would be best suited for you, you can call or stop in and talk to one of our personal banking professionals for more information.
To open your IRA, stop by the Bank of Hazelton location at 363 Main Street, Hazelton, North Dakota. Or get started by calling us at 701-782-6295 for account openings by phone. Call and talk to a personal banking professional during our Customer Service hours, 8:30 AM to 4:00 PM Monday- Friday.