Individual Retirement Account (IRA)
*Traditional IRA - Your earnings grow tax-deferred and, if eligible, your contributions may be tax-deductible as well. Even if you or your spouse has a retirement plan at work, a Traditional IRA may be a great opportunity to enjoy the benefit of a tax deduction as well as tax-deferred growth on retirement savings year after year.
- Opening deposit $25.00
- Interest bearing
- You can contribute up to the year you turn 70½ as long as you have earned income
- You can deduct your contributions if you meet the eligibility requirements.
- Tax-deductible contributions and earnings are taxed as ordinary income when withdrawn
- You can also roll over your 401(k) or employer-sponsored qualified retirement plan to consolidate your retirement assets
- Withdrawals must begin at age 70½
*Roth IRA - Your contributions are made in after-tax dollars. And, if you meet certain requirements, the money you take out at retirement will be free from federal taxes. Roth IRAs can be a good choice if you have many years until retirement or if you plan to pass your IRA on to your heirs who also get the benefit of tax-free income.
- Opening deposit $25.00
- Interest bearing
- You can contribute at any age as long as you have earned income and meet the income limitations
- Contributions are made in after-tax dollars, no deductions are allowed.
- Contributions (all are made after tax) and earnings are income tax-free if the account is held for 5 years and are withdrawn for a qualified reason.
- Withdrawals are not required until upon death of the owner
*For current rates and information Please call Lake County Bank at (406)745-3123
