Individual Retirement Account
Secure Your Future With An Individual Retirement Account
Advantage Community Bank offers a variety of IRA options. Call one of our experienced IRA specialists to help you determine your best plan.
- Earnings on a Traditional IRA are tax-deferred.
- Contributions may be tax-deductible depending upon your income and whether or not you have a qualified retirement plan.
- Funds can be withdrawn after age 59 1/2 without a tax penalty.
- Distribution must be taken beginning at age 70 1/2.
- Allows only nondeductible contributions
- Tax-free “Qualified” withdrawals after 5 year holding period
- Distributions are NOT required to be taken at age 70 1/2.
Simplified Employee Pension (SEP) Plan
- A SEP is a retirement plan established by an employer or a self-employed individual
- The employer contributes a percentage of compensation for each eligible employee
Direct Rollovers / Transfers
- Retiring or Leaving a job? We offer Rollover IRAs to help you maintain tax deferral on your 401k or other employer-sponsored retirement plan.
Advantage Community Bank allows you to add contributions to your existing IRA at any time.
Is an IRA Right For You? Call one of our personal bankers at your nearest branch today.
You might also be able to save on your present taxes with an Individual Retirement Account, by deducting your qualified contributions from your taxable income. Many Americans can deduct all or part of their IRA contributions from current income taxes. The deductible amount depends on your income, marital status and whether you’re an active participant in an employer sponsored plan as defined by the Internal Revenue Service.
With an Individual Retirement Account, you may also be able defer taxes until you retire when you will probably be in a lower tax bracket. The chart below shows you how much you may be able save each year. You may want to consult your tax advisor to review the tax deductible status of an IRA. Regardless of the amount you’ll be able to save now on taxes, an IRA is a smart way for you to save for a secure retirement.
IRA Tax Savings Potential Chart:
|IRA Deductible Contribution Amount||10 % Tax Bracket Savings||15 % Tax Bracket Savings||25 % Tax Bracket Savings||28 % Tax Bracket Savings||33 % Tax Bracket Savings||35% Tax Bracket Savings|
If You’re Changing Employers, An IRA Rollover Makes Sense. If you are retiring or changing jobs and anticipate withdrawing money from your employer’s retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan. You can ask your employer to arrange for a “direct rollover” of your money into a new IRA account with us, or you can do it yourself with an IRA-to-IRA rollover.
You must complete the rollover within 60 days from the date you receive the assets from your old IRA in order to qualify and not pay the mandatory 20% withholding and possibly other penalties as well. For more information about IRA Rollovers or opening a new IRA just give us a call at 888-385-6772.