Individual Retirement Accounts (IRA)

Reach your retirement savings goals with an IRA account that gives back and offers tax benefits to those who qualify.

 

How to Get Started?

The Traditional and Roth IRAs RiverWood Bank offers differ mainly in how and when your money is taxed. The tax advantage of a Traditional IRA is that your contributions are tax-deductible in the year they are made. The tax advantage of a Roth IRA is that your withdrawals in retirement are not taxed. Check with a RiverWood Banker to see if you are eligible for an IRA, the IRS has specific rules to follow. Don’t forget to consult a tax advisor too.

Talk to a Banker

Traditional IRAs*

  • Contributions to a Traditional IRA may be tax-deductible, up to 100%, but distributions are generally taxable.
  • Earnings grow tax deferred.
  • Distributions are required to be taken by Traditional IRA holders beginning at age 70 ½.
  • Distributions are generally taxable, but are penalty-free if withdrawn under one of the following circumstances:
    • Attaining age 59 ½;
    • Incurring a disability;
    • Payment for certain health insurance, medical expenses, and higher education expenses;
    • Payment for first-time homebuyer expenses;
    • Death (payments to beneficiaries); or
    • Being a qualified military reservist.

Roth IRAs*

  • Contributions to a Roth IRA are not deductible.
  • Earnings can grow tax free.
  • Contributions can generally be distributed tax free at any time.
  • Distributions are not required by Roth IRA holders, though beneficiaries may be subject to required distributions.
  • Earnings can be distributed tax free if the Roth IRA holder first made a Roth IRA contributions at least five years ago, and one of the following events occurs:
    • Attaining age 59 ½;
    • Incurring a disability;
    • Payment for first-time homebuyer expenses; or
    • Death (payments to beneficiaries).

Still Have Questions?

Find FAQs, routing numbers and online banking tutorials in our Education Center.

*Consult your tax advisor, legal counsel, and/or insurance agent for advice and information concerning your particular situation and your eligibility for IRAs. RiverWood Bank representatives may not give legal or tax advice.

 

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