Security 1st Bank

Individual Retirement Account  (IRA)

IRAs can help you save for the future while taking advantage of tax-deferred growth and dividend interest. You can choose between a Traditional IRA or a ROTH IRA. Depending on the IRA you select, your contributions may be tax deductible.

You may own both a Traditional and a ROTH IRA, but you are limited to a maximum annual contribution of $5,500 per person in total; $6,500 if you are age 50 or older. Fixed or variable rates are available.

Your Security First Bank representative can provide additional details on the features and requirements of Individual Retirement Accounts.

Traditional IRA

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With a Traditional IRA, you make contributions that may be tax-deductible. Earnings are tax-deferred until you withdraw them in retirement.

  • A Traditional IRA requires a minimum opening balance is $250
  • For 2013 and 2014, $5,500 is the maximum contribution per year, per individual
  • For 2013 and 2014, $6,500 is the maximum contribuition per year, per individual age 50 or older
  • Withdrawals are taxed at your ordinary income tax rate
  • Penalties apply if withdrawals are made prior to age 59½
  • Minimum distributions must begin at age 70½
  • Fixed or variable rates are available
  • Interest is compounded quarterly
  • $25 transfer fee will be charged for each IRA transfer

ROTH IRA

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With a ROTH IRA, you make contributions with money you’ve already paid taxes on. Earnings are tax-free when you withdraw them in retirement, if certain conditions are met.

  • A Roth IRA requires a minimum opening balance is $250
  • For 2013 and 2014, the maximum contribution is $5,500 per person, per year
  • For 2013 and 2014, the maximum contribution is $6,500 per year, per individual age 50 or older
  • Fixed or variable rates are available
  • Interest is compounded quarterly
  • $25 transfer fee will be charged for each IRA transfer
  • It is possible to convert your existing Traditional IRA to a Roth IRA
*We recommend consulting with a tax or legal professional for guidance on tax implications.