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Individual Retirement Accounts

Individual Retirement Accounts (IRAs) are tax-advantaged accounts that help you save money for retirement. We know planning for retirement isn’t always easy, but we’re here to help you save, every step along the way. We offer IRA Certificates of Deposit and savings accounts to help you save for your future. 

 

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Types Of IRAs

Traditional IRA

A Traditional IRA can have immediate tax benefits. The owner of a Traditional IRA may be able to deduct their IRA contribution amount from their taxable income. Also, if you have an old 401K or 403B retirement account, you may be able to rollover those funds into a Traditional IRA. However, when it comes time to withdraw the money, income taxes are assessed on all withdrawals. In addition, there is a required minimum distribution beginning at age 70 ½, and a penalty may apply if you withdraw money before you are 70 ½ .

Roth IRA

Investments into a Roth IRA are with post-tax dollars. This means that you pay taxes when you earn the money, and all growth and withdrawals from your Roth IRA accounts are non-taxable. Required minimum distribution rules and age limits do not apply to Roth IRAs, and you may continue to contribute to a Roth IRA even after you reach age 70 ½.

SEP IRA

If you’re a self-employed individual or a small employer, you are likely eligible to have a SEP (Simplified Employee Pension) IRA. SEP IRAs have many of the same rules as Traditional IRA accounts, but have much higher limits, allowing you to save more aggressively.

Features

  • Tax advantages
  • Interest-bearing accounts. Speak with an ISB Customer Service Representative for current account rates.

How to Get Started

Setting up your IRA is easy. All you need is:

  • A valid driver’s license
  • Your Social Security Number (SSN)

Account Requirements and Charges

  • All IRAs are subject to federal regulations regarding eligibility, deductibility, and withdrawals, etc.
  • Non-qualified withdrawals from your IRA are subject to penalties. Please see IRS Publication 560 for more information or see your tax advisor or attorney for additional details and advice.
  • ISB employees are not tax advisors. Please consult with your tax professional prior to making any decisions that may have tax or other financial implications.