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  • Tax-deductible contributions and earnings are taxed as ordinary income when withdrawn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  • Contributions (all are made after tax) and earnings are income tax-free if the account is held for 5 years and are withdrawn for a qualified reason.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

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