Individual Retirement Accounts were created to help an individual save for retirement! Alliance Bank invests funds into CDs, but the funds can be invested into mutual funds, stocks, bonds, etc. through our Investment Center. Think of IRAs as a "set of rules" rather than a specific product.
The information provided below is in regards to Alliance Bank IRA products.
A Traditional IRA is a personal retirement savings plan with tax advantages. The investment grows tax-deferred until its withdrawn upon retirement.
This is an ideal investment if you think you may be in a higher tax bracket when you retire. The Roth IRA gives you the ability to invest your after-tax dollars today, let the investment grow tax-deferred, and take qualifying withdrawals tax-free.
A Simplified Employee Pension (SEP) is a company-sponsored IRA that allows your employer to contribute to your existing IRA. These contributions are tax deductible.
IRA Details Only One Person Owns an IRA. It is never a joint account; however, beneficiaries can be appointed.The Account Holder must have Earned Income.Other Eligibility Requirements may apply based on your personal state of affairs.Fixed & Variable Rates availableFixed Rate Minimum balance to open: $1,000.00 Terms Available: 1 to 5 yearsVariable Rate Minimum balance to open: $100.00 Term Available: 18 months
Variable Rates subject to change weekly Monthly Statements are available:When the IRA is combined to a Checking Account statementWhen combined, your statement is accessible with Online Banking.
Click on the Online Services tab to tell the system which statements you'd like to see online.
Traditional IRA Roth IRA
Eligibility Under age 70½ Any Age
Tax Deductibility YES NO
Distribution Must take at age 70½ None Required
W/D Penalties Cannot w/d until age You can w/d your
59½ without penalty contributed amount
anytime w/o tax or IRA
penalty; you pay tax on
TAX YEAR Contribution Limits Catch-Up Limit*
2011 $5,000 $1,000
2012 Not Yet Available Not Yet Available
* Example: If age 50+, you may contribute $6,000 for 2011.
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