Individual Retirement Accounts (IRAs)
An IRA offers tax advantaged savings for your retirement.
- Savings and CD options available
- No monthly fees
The amount you can contribute is set by the IRS each year. If you’re 50 or older, you can make an additional catch-up contribution.
Traditional vs. Roth IRAs: What’s the Difference?
A Traditional IRA
- Contributions are made pre-tax. At retirement, withdrawals are taxed at your current income tax rate.
- Contributions are typically tax deductible. If you also have an employer retirement plan, the tax deductibility of your traditional IRA may be limited by the IRS.
- Subject to required minimum distributions (RMDs).
- Funds withdrawn prior to retirement will incur a penalty unless they meet exception criteria for certain uses.
A Roth IRA
- Contributions are made post-tax. Roth IRA withdrawals are tax free.
- Contributions are not tax deductible.
- You can’t contribute to a Roth IRA if your income exceeds a limit set by the IRS.
- Only earned income can be contributed.
- Contributions can be withdrawn at any time tax and penalty free. Early withdrawal of earnings may be subject to penalty and tax unless they meet exception criteria for certain uses.
A Roth IRA may be preferable if you want tax-free income in retirement (especially if you believe you’ll be subject to a higher tax rate). A traditional IRA may be preferable if you prefer a tax deduction now.
Regular, IRA, and Youth CD Rates
As high as 1.20% APY1
More to Explore
1 APY = Annual Percentage Yield. Rates are subject to change. Fees may reduce earnings. CDs are subject to early redemption penalties: 6-month CD, loss of 30 days interest; 1-year CD, loss of 90 days interest; 2-5-year CD, loss of 180 days interest. Rates effective . Consult your tax advisor regarding taxation of IRA contributions and withdrawals.
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Kalsee's routing number is #272481855. You can find it located at the bottom left of your checks.
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