An IRA is an excellent foundation for your retirement nest egg. The earlier you begin planning for your retirement, the more money you'll have to fulfill your dreams. And your contributions may be tax deductible. (Please consult your tax advisor.)
BankCherokee offers Traditional, Roth and Education IRAs with a variety of yields and maturities. Remember, you can still contribute to an IRA even if you participate in an employer or government sponsored retirement plan, as long as you earn income.
With few exceptions, funds deposited in an IRA may not be withdrawn before retirement age without incurring penalties.
A Traditional IRA is a savings tool that allows your money to grow tax deferred - that is, you pay no income taxes on your earnings until the money is withdrawn at retirement. The advantage of tax-deferral is that your money can grow faster than if it was invested in a taxable account.
Monthly Maintenance Charge
None, or $2 per month if balance falls below minimum
Who Can Contribute?
Anyone under the age of 70½ who has earned income is eligible to contribute to a Traditional IRA. Depending on your personal financial situation, you may be able to take a full or partial tax deduction on your maximum annual Traditional IRA contribution.
Advantages: Earnings grow tax deferred. Contributions may be tax deductible.
With a Roth IRA contributions are made with nondeductible, after-tax dollars and may be withdrawn tax and penalty free. Your annual income determines if, and how much, you can contribute. All earnings are federal income tax and penalty free when withdrawn, as long as the account has been held for at least five years and the distribution is taken for one of the following reasons:
- Attainment of age 59½
- Death of a spouse
- First-time home purchase (up to $10,000 during your lifetime)
- Earnings grow tax deferred
- Qualified withdrawals of earning are free from federal taxes*
- Contributions can be made past 70½ (with earned income)
- Distributions are not required at any age
- Your contribution can be withdrawn tax-free
*State and Local Taxes may apply
An Education IRA is designed to help save for the cost of a child's college education. Earnings in the account grow tax deferred and are federal tax free when withdrawn to pay for qualified higher education expenses (including tuition, fees, books supplies, equipment, room and board). Anyone, including parents, grandparents, relatives and friends, with an adjusted gross income of $95,000 or less ($190,000 or less if married and filing jointly) can contribute.
Contributions are made with after-tax dollars and are not deductible. They can continue until the child reaches age 18 and must be withdrawn by age 30.
- Earnings grow tax-deferred
- Withdrawals for qualified higher education expenses are tax-free
- Account is transferable to another child, if intended beneficiary reaches age 30.