Invest in yourself.
Make art. Write a book. Travel. Teach. Consult. Whatever you dream of doing in retirement, an IRA saving account can go a long way toward getting you there. And whether you’re 50 years away or 15, an IRA provides a safe, easy, tax-advantaged investment vehicle to save for it.
- $2,500 minimum deposit to open, FDIC-insured
- No set-up or annual fees
- $1,000 annual “catch up” contributions allowed for ages 50 and up
TRADITIONAL IRA
- No income limits to open
- No minimum contribution requirement
- Tax-deductible contributions (on state and federal income tax)*
- Tax-deferred earnings until withdrawal
- Eligible for withdrawals at age 59 ½
- Early withdrawals subject to penalty**
- Mandatory withdrawals at age 73
ROTH IRA
- Income limits apply***
- Non-tax-deductible contributions
- 100% tax free earnings at withdrawal*
- Penalty-free withdrawals of principal contributions*
- Eligible for interest withdrawals at age 59 ½
- Early withdrawals on interest subject to penalty**
- No mandatory distribution age
- No age limit on contributions with proof of earned income
*Subject to minimal conditions. Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
***Consult a tax advisor.
Your IRA Questions, Answered.
You can avoid the 10% additional tax as long as you meet all the qualifications for an IRA distribution for a first-time homebuyer.
Source: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras
Which IRA is right for you?
With F&M Bank, you can choose between two options: Traditional IRA or Roth IRA. The differences are small but significant. With a Traditional IRA, you contribute pre- or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½. With a Roth IRA, you contribute only after-tax dollars, your money grows tax-free, and withdrawals after age 59½ are tax- and penalty-free.
How do you know which IRA is the best savings account for you? Here’s a basic rule of thumb:
- Go the traditional route if you’re under 70½ and anticipate being in the same or lower tax bracket when you start taking withdrawals.
- Go with a Roth if you’re at an age where you want to accelerate your savings and anticipate being in a higher tax bracket.
