Individual Retirement Accounts (IRA's)
An individual retirement account (IRA) is an investing tool used by individuals to earn and earmark funds for retirement savings. There are several types of IRA’s and Bank of Sullivan offers Traditional IRA’s and Roth IRA’s.
Traditional and Roth IRA’s are established by individual taxpayers, who are allowed to contribute 100% of compensation up to a set maximum dollar amount.
Traditional IRA’s are a personal tax-favored savings account. It allows for tax-deductible contributions for most people. In addition, earnings are not taxed until you begin to withdraw from the IRA.
A Roth IRA is one of the most exciting personal savings options available today. While contributions to your Roth IRA are not tax deductible, the best part about owning a Roth IRA is what happens when you withdraw from the account. If certain conditions are met, withdrawals from your Roth IRA are tax-free and penalty-free.
For further information regarding IRA’s, please contact a Financial Service Representative at your local Bank of Sullivan branch.