222 Central Park Ave
Retirement may seem far away, but it's never too early to determine how much you'll need and to begin the process of saving. Making smart financial decisions now can help impact how you live in retirement. We can assist you along the way with our Individual Retirement Account (IRA) program—it’s designed to help you reach your retirement goals.
Traditional IRA Account
A traditional IRA is a tax-deferred personal savings account that allows you to save for retirement without a company-sponsored plan. Throughout your lifetime, you can make tax-deductible “contributions” to your IRA, which you can then invest in securities such as stocks, bonds, mutual funds, or annuities.
With a traditional IRA the income taxes are deferred until you withdraw them. At age 59 ½, you can make taxable withdrawals from the account called distributions for your retirement. If you choose to take distributions before you turn 59 ½ years old, the government imposes a premature distribution penalty of 10% on your withdrawal. Additionally, when you turn 70 ½ years old, you are required to take distributions by April 1 of the calendar year. These distributions are referred as your Required Minimum Distributions (RMD)
Roth IRA Account
Unlike the traditional IRA, contributions to the Roth IRA are considered “after-tax” and therefore not deductible, but you can take distributions from the Roth IRA tax-free.
There is no mandatory age at which you are required to take distributions from the Roth IRA, and there is no premature distribution penalty for amounts you withdraw from the principal. The Roth IRA five-year rule says you cannot withdraw earnings tax-free until it’s been at least five years since you contributed to a Roth IRA account. This rule applies to everyone who contributes to a Roth IRA,