Individual Retirement Accounts (IRAs)

Security, earnings, and tax savings all rolled into one. IRAs with Bank2 are a great way to prepare for the future. The tax benefits allow for significant annual savings to compound over a lifetime, providing a substantial nest egg for retirement.

We don't charge any maintenance fees to make IRAs available to everyone. Plan for your future by investing today.

Summary

Tax-advantaged retirement savings
Greater interest than regular savings
No setup or maintenance fees
Traditional or Roth IRA options
Use Bank2 CDs to invest within IRA
$5,000 contribution limit per year
Additional $1,000 "catch-up" contribution allowed for ages 50+
Funds can be used to purchase CDs, stocks, bonds, etc. within IRA
$500 minimum deposit to open
FDIC insured

Traditional vs. Roth

Traditional and Roth IRAs both offer distinct tax advantages. A traditional IRA offers some tax savings both now and upon withdrawal. A Roth IRA does not offer immediate tax benefit, but may provide greater savings upon withdrawal.

Traditional IRA

Anyone under age 70½ may open
Contributions are tax deductible on state and federal income tax*
Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
Withdrawals can begin at age 59½
Early withdrawals subject to penalty**
Mandatory withdrawals at age 70½

Roth IRA

Income must be less than $120,000 annually to open ($177,000 for married couples)
Contributions are NOT tax deductible
Earnings are 100% tax free at withdrawal
Principal contributions can be withdrawn without penalty*
Withdrawals on interest can begin at age 59½
Early withdrawals on interest subject to penalty**
No mandatory distribution age

*Subject to some minimal conditions. Consult with a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.