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Individual Retirement Accounts

A good way to start planning for your retirement is by looking over your personal Social Security benefits statement, which is mailed to workers attaining ages 25, 30, 35, 40, 45, 50 and 55 by the Social Security Administration.

Questions? Ask a Citizen.

Explore our Individual Retirement Account options.

An Individual Retirement Account (IRA) is one of the easiest and most common financial tools used to help address retirement goals. It lets you take advantage of tax-deferred growth and allows you to choose from a wide array of investment options, depending on your life stage and risk tolerance.

Traditional IRA Rollover

Recently changed jobs? Talk to us about your options, including an IRA Rollover.*

Key benefits of a Rollover IRA include:

  • Reviewing your retirement goals, retirement assets, and asset allocation
  • Working with a Financial Consultant you may have more options to choose from

Converting to a Roth IRA

Depending on your current situation, converting to a Roth IRA may be a part of your retirement strategy. A Roth IRA may provide additional tax benefits. Some benefits of a Roth IRA include:

  • Allows your assets to potentially grow tax-free over time
  • Withdrawals may be tax-free, based on certain criteria
  • May reduce taxable estate
  • There is no mandatory withdrawal at age 70½, unlike Traditional IRAs

A Roth IRA may not be appropriate for everyone. That’s why it’s important to talk to a Financial Consultant who can look at your entire retirement portfolio and develop a strategy to help meet your long-term needs. Simply call us at 1-800-242-2224 to request a complimentary financial review with one of our Financial Consultants.

Compare a Traditional IRA to a Roth IRA

This comparison helps to explain unique benefits of Traditional IRAs and Roth IRAs.

 

  Traditional IRA Roth IRA
Earnings Growth Compound interest over time, tax-deferred Tax-free growth
must be held for 5 years
Contributions Invested money is not taxed Invested money is taxed
Tax Deductions
(Subject to IRS guidelines)
Yes (in most cases) None
Distributions* Distributions are taxed as ordinary income Distributions are not taxed
must be held for 5 years
Annual Contribution Limits

$5,500 if you're under 50
$6,500 if you're over 50

$5,500 if you're under 50
$6,500 if you're over 50

Mandatory Withdrawal Age 70.5
Beneficiaries must take RMDs
None
Beneficiaries must take RMDs

*If you are under age 59½ at the time of a distribution, a 10% early withdrawal penalty may apply. Be sure you understand the tax consequences of any distribution before you initiate one.  You should consult your tax advisor about your specific tax situation.

Earnings distributions from a Roth IRA are income-tax-free only if the Roth IRA meets the five-year aging requirement and its owner is 59½, deceased, or disabled. Distributions up to $10,000 for first-time home purchases may also be tax-free provided the five-year aging requirement is met.

Find out which IRA is right for you.

A Citizens Investment Services Financial Consultant can help you figure out which strategy matches your needs. Even if you have a relationship with another investment firm, we can offer you an objective second look at your long-term plan to help ensure you are on target to meet your retirement savings goals.

Call 1-800-242-2224 to request a complimentary financial review.

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