Individual Retirement Account (IRA)

Traditional IRA Accounts provide tax-free accumulated interest income until retirement and can also receive tax deductions for the years you contribute money.

The advantages of a Traditional IRA include:

• No penalties for withdrawals at the age of 59.5
• Defer tax payments up to the age of 70.5
• No penalties on withdrawals for higher education or a first-time home purchase (taxes will be paid on the amount withdrawn)
• Donations to traditional IRAs are pre-tax contributions, meaning that you won’t have to pay interest on deposited funds until those funds are withdrawn.

Roth IRA Accounts allow you to contribute post-tax contributions into an account, leaving you with no tax deductions for accumulated earnings upon retirement if you meet requirements to open a Roth IRA.

The advantages of a Traditional IRA include:

• No penalties for withdrawals at the age of 59.5
• Defer tax payments up to the age of 70.5
• No penalties on withdrawals for higher education or a first-time home purchase (taxes will be paid on the amount withdrawn)
• Donations to Roth IRAs take place after income taxes, meaning that you won’t have to pay interest on any interest that accumulates over time, leaving you with more money in the long run.