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 Pensions
The 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.