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IRA CD

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Tax-deferred earnings.*
 
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Reduce current taxes through IRA contributions.*
 
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Penalty-free distribution before age 59 1/2 for qualified reasons.
 
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Non-Taxable deposits grow much faster than a taxable investment with the same yield.
*Please consult your tax advisor.

IRA CD Comparison

FEATURE REGULAR1 ROTH1

Tax-Deductible Contributions2

Yes No

Tax-Deferred Earnings

Yes Yes

Maximum Annual Contribution

Single


Married Filing Jointly
$5,5003,4


 $11,0003,4
Single


Married Filing Jointly
$5,5003,4


 $11,0003,4

Tax-free Withdrawal of Earnings

No Yes

If account is held for five years after the first contribution is made, and any of the following reasons apply.
  • Age 59 1/2 and older
  • Disability
  • Death
  • First-time home purchase5

Penalty-Free Distribution

Qualified exceptions to the 10% penalty:

  • Age 59 1/2 and older
  • Disability
  • Death
  • Unreimbursed medical expenses above 7.5% Adjusted Gross Income (AGI)
  • Health Insurance costs if unemployed for more than 12 weeks
  • Eligible higher education expenses
  • First-time home purchase5
  • IRS levy of the account
  • Substanitally equal periodic annuity payments
  • Qualified reservist distribution

Age Deadline for Contributions2

70 1/2 No Age Limit

1 Fees may reduce account earnings. Early withdrawal may be subject to taxation and penalties by the IRS and interest penalties may be charged by the Bank. $15 account closing fee and $12 annual administration fee apply. The minimum opening deposit is $100. 2 Please consult your tax advisor regarding the deductibility of your IRA Account contributions. 3 $5,500 maximum ($11,000 for married filing jointly) in either a Roth Account or a Regular IRA Account, or in a combination of both. 4 The maximum annual contribution for single individuals age 50 or older is $6,500; for married individuals age 50 or older filing jointly, $13,000.  5 If both you and your spouse are first-time homebuyers, each of you can receive distributions up to $10,000 for a first home without having to pay the 10% penalty.

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