Retirement

Building Your Retirement

At some point, we all stop working and retire. While this may feel far away, its not too early to start planning your financial future. Unfortunately, most Americans arent as prepared as they should be for retirement. If youre thinking about starting to save, then an Individual Retirement Account, or IRA, may be right for you.

What is an IRA?

An IRA is an investment account with tax benefits aimed at helping you save for retirement. Depending on the IRA plan type and the investments within that plan, income from interest, dividends, and capital gains compound each year without being taxed while funds remain within an IRA plan. We offer certificates of deposit, savings accounts, and money market accounts for our IRA plans.

Id like to open an IRA. What are my options?

There are several different types of IRAs. Each one comes with its own set of rules and restrictions. The two most common types are Roth IRA and Traditional IRA.

The main difference between a Roth IRA and a Traditional IRA is in the way they are taxed. With a Roth IRA, you pay taxes when you first put money into the account and do not have to pay taxes when you withdraw the money in retirement. The money invested in Traditional IRAs is not taxed when first invested but is subject to tax when funds are withdrawn.