Individual Retirement Accounts (IRAs) | Guntersville, AL - Albertville, AL - Arab, AL | Citizens Bank & Trust

Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

Part of working hard is, of course, to provide for present day, but also to provide for the future. Your retirement is largely decided by the decisions and actions you take today.

We offer traditional and Roth retirement plans to help meet your specific goals, backed by interest above standard savings rates. Each plan can also provide major tax advantages.* Make your hard work pay off with a well-deserved IRA.

Summary
  • Tax-advantaged retirement savings*
  • Competitive interest above standard savings rates
  • Traditional and Roth IRA options
  • SEP available for self-employed customers
  • No setup fees
  • No monthly or annual maintenance fees
  • Annual contribution limits
  • Additional $1,000 "catch-up" contribution allowed for ages 50+**
  • Funds can be used to purchase CDs within IRA
  • $500 minimum deposit to open

Schedule of Fees

*Consult a tax advisor.

**As of 2014; IRS may change figure annually.

Traditional vs Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution in any year allowing flexibility
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70½

Roth IRA

  • Income limits to be eligible to open Roth IRA***
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal*
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals on interest can begin at age 59½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

*Subject to some minimal conditions. Consult a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

*** IRS may change figure annually. Consult a tax advisor.