Individual Retirement Accounts (IRAs)
Fill your Golden Years with truly special moments
Whether retirement is a few years or a few decades away, you've probably thought about how you want to spend that precious time. Whatever your plans and dreams may be, the best way to make them come true is to start saving now with the help of a tax-advantaged Traditional or Roth IRA from West Gate Bank®.
Traditional IRA
- Contribution limits are determined by the IRS annually
- Potential income tax deductions for each year you make a contribution
- Annual interest income is tax-deferred
- Generally, account holders cannot withdraw funds before age 59 ½ without a 10 percent early withdrawal penalty
- Withdrawals are always subject to income tax regardless of age
- You may continue contributing to your Traditional IRA at any age as long as you have earned income
- In most cases, you are required to take annual distributions from your Traditional IRA beginning at age 73
- The amount of the required minimum distribution (RMD) depends on the account holder's age and the 12/31 account balance
Visit a branch to open a Traditional IRA.
Roth IRAs
- Contributions to a Roth IRA are not tax deductible
- Annual interest earned on a Roth IRA is tax-deferred
- Account holders cannot withdraw earnings before age 59 ½ without a 10% early withdrawal penalty
- After age 59 ½, account holders can take tax-free and penalty-free distributions if the IRA plan has been established for 5 years
- You may continue to contribute to your Roth IRA at any age as long as you have earned income
- There is not a Required Minimum Distribution with a Roth IRA but there are exception timelines for Inherited Roth IRAs
Visit a branch to open a Roth IRA.
