Individual Retirement Accounts
We also offer Traditional and Roth IRAs at either a variable or fixed rate. IRAs are a great option if you are looking to save for retirement. Review the chart below to learn about the differences between Traditional and Roth IRAs.
|Features||Traditional IRA||Roth IRA|
|Who can contribute?||You can contribute if you (or your spouse if filing jointly) have taxable compensation.||You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see 2020 and 2021).|
|Are my contributions deductible?||You can deduct your contributions if you qualify.||Your contributions aren’t deductible.|
|How much can I contribute?||
The most you can contribute to all of your traditional and Roth IRAs is the smaller of:
|What is the deadline to make contributions?||Your tax return filing deadline (not including extensions). For example, you can make 2020 IRA contributions until April 15, 2021.|
|When can I withdraw money?||You can withdraw money anytime.|
|Do I have to take required minimum distributions?||You must start taking distributions by April 1 following the year in which you turn age 72 and by December 31 of later years. (70 ½ if you reach age 70 ½ before Jan. 1, 2020.)||Not required if you are the original owner.|
|Are my withdrawals and distributions taxable?||Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 59 ½ you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.||None if it’s a qualified distribution (or a withdrawal that is a qualified distribution). Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 59 ½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.|
Simplified Employee PensionsThe Bank of Frankewing also offers a Simplified Employee Pension (SEP), which is a great option for small business owners as well as those who are self-employed.
To learn more about our investment accounts and current rates, contact Jennifer Reese or Dawn Fox at 931-363-1796. For any Questions or comments, submit an inquiry to Contact Us, and we will reply quickly.