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 2022.)|
|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 2022 IRA contributions until April 15, 2023.|
|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.