Individual Retirement Account

Trust is hard to come by, especially when it’s time to place your financial future in the hands of experts. That is why Systematic Savings is dedicated to providing you with honest service and the best options for your investments. An individual retirement account (IRA) is a personal savings plan that offers specific tax benefits while helping you achieve your retirement goals.*

Traditional IRA

Here is what to expect when investing in your Traditional IRA

• $100 minimum contribution requirement to open
• You can contribute if you (or your spouse if filing jointly) have taxable compensation**
• Contributions may be tax deductible on state and/or  federal income tax, if you qualify
• You can withdraw money anytime
• Any withdrawals made prior to age 59 ½ may be subject to a 10% IRS penalty
• Due to changes made by the SECURE Act, if your 70th birthday is July 1, 2019 or later, you do not have to take withdrawals until you reach age 72 ***

* Consult a tax advisor.

** Prior to January 1, 2020, you were unable to contribute if you were age 70 1/2 or older. Contact Bank with questions on contribution limits.

*** 70 ½ if you reach the age of 70 ½ before January 1, 202

Roth IRA

There are more similarities than differences between a Traditional and a Roth IRA. A Roth IRA is another excellent option for investing outside of your career and employs different tax treatments than the Traditional IRA.

Here is what to expect when investing in your Roth IRA

• Open and funded without employer participation
• You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and are within certain income limits.
• You can withdraw money anytime
• Allows you to invest after-tax dollars
• Investment grows tax-deferred
• Allows qualified, tax-free withdrawals

In certain circumstances, withdrawal of your funds before the term expires will result in a penalty which could reduce your principal.

Call or stop by one of our branches today to speak to a Customer Service Representative to find out how we can help you determine which IRA is right for you.