Individual Retirement Accounts

An Individual Retirement Account is a personal retirement account that helps you save for your retirement.  IRAs offer either tax-deferred or tax-free growth of any earnings* and some IRAs even provide tax-deductible contributions.

Traditional IRA

Contributions may be tax deductible, and earnings are tax-deferred.  Individuals with earned income may contribute annually and if you are over 50, you may make catch-up contributions.

Roth IRA

Created as an alternative to Traditional IRAs, Roth contributions are not tax deductible, although any earnings grow tax-free.  This means paying taxes now to enjoy tax-free income in retirement.  Certain income limits are required to qualify.

Education IRA (Coverdell Education Savings Accounts)

Any individual (including a child) can contribute to a child’s education IRA and grow tax free until withdrawal.  There is no limit on the number of education IRAs that can be established designating the same child as the beneficiary. The funds may be used for any form of education.

Spousal IRA

Designed to help non-working spouses save for retirement by investing in a traditional or Roth IRA.

Rollover IRA

A great way for individuals who are changing jobs or retiring to continue to receive the same tax advantages as they had with an employer-sponsored plan like a 401(k).  Plan assets are simply “rolled over” to an IRA, where the assets and any earnings remain tax-deferred. Plus, an IRA generally offers more investment options and flexibility.  Several individual IRAs can “roll over” into one Rollover IRA for simplification and consolidation of accounts.

Citizens Deposit Bank offers Fixed and Variable interest rate IRA options. Changes to the variable rate are made quarterly and interest is compounded annually.

Please consult your tax advisor to determine amounts you may deposit.  Limits listed above are based on 2010 guidelines.