Individual Retirement Accounts (IRAs)
Saving for your retirement is always a good idea. Doing so with major tax advantages is an excellent idea. Solvay Bank offers IRAs to meet everyone's needs.
You'll enjoy our personal customer service and competitive interest rates. Best of all, with no setup or maintenance fees, there's nothing stopping you from preparing for a secure financial future.
- Traditional IRA
Anyone can open a traditional IRA. It offers immediate tax savings in addition to tax-deferred earnings.
- No setup or annual fees
- Interest earnings are tax deferred
- Current income grows tax free
- Contributions can be deducted from income tax returns*
- Must be under age 70½ to open
- $5,000 contribution limit per year (for 2012 and 2013)
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Withdrawals can begin at age 59½
- Mandatory withdrawals at age 70½
- Early withdrawals subject to penalty**
- $500 minimum deposit to open
- FDIC insured
*Consult with a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
- Roth IRA
The Roth IRA was created for those concerned about being in a higher tax bracket at retirement. Earnings are tax free at withdrawal, rather than tax deferred. But contributions are not tax deductible and income limits apply to open a Roth IRA.
- No setup or annual fees
- Earnings and principal are 100% tax free upon withdrawal
- Contributions are not tax deductible
- $5,000 contribution limit per year (For 2012 and 2013)
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Funds can be used to purchase stocks, bonds, CDs, etc.
- No mandatory distribution age
- Principal contributions can be withdrawn without penalty*
- Early withdrawals on interest subject to penalty**
- $500 minimum deposit to open
- To open a Roth IRA, modified adjusted gross income must be less than $110,000 annually (or $220,000 for married couples)
- FDIC insured
*Subject to some minimal conditions.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
- Coverdell ESA
The Coverdell Education Savings Account is a savings plan for those wishing to fund future higher education expenses of a designated beneficiary. The earnings will be tax free if used for qualified education expenses.
- No setup or annual fee
- Interest grows tax free
- Withdrawals are tax free when used for qualified education expenses*
- Designated beneficiary must be under 18 when contributions are made
- To contribute to an ESA, certain income limits apply**
- Contributions are not tax deductible
- $2,000 maximum annual contribution per child
- FDIC insured
*Qualified expenses include tuition and fees, books, supplies, board, etc.
**Consult your tax advisor to determine your contribution limit.
