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Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

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Summary

It's never too early to start planning for retirement. Peoples Bank offers both Traditional and Roth IRAs to suit your individual financial planning needs. If you're unsure, consult with one of our knowledgeable investment advisors to see which is right for you.

Features:

  • Great interest rates
  • Fixed and variable terms available
  • Possible tax advantages
  • FDIC insured

If you're making a current year contribution, you may make it to the Roth or the Traditional IRA.

Your tax advisor will consult you as to which IRA vehicle is right for you.

Roth IRA

Another vehicle for saving for retirement is the Roth IRA. Your maximum contribution to the Roth for 2013 is $5,000*. Additionally, if you have attained age 50 or older by the end of your taxable year, you are eligible to make catch-up contributions. These contributions are not deductible; however, your earnings are TAX-FREE when you're ready to use them, as long as you hold the investment for at least 5 years AND you make a qualified distribution.


If you're making a current year contribution, you may make it to the Roth or the Traditional IRA.



*Subject to annual cost-of-living adjustments (COLAs).

Traditional IRA

In a traditional IRA, you may contribute up to $5,000 for 2013* and don't pay tax on the earnings until you begin distribution. Additionally, if you have attained age 50 or older by the end of your taxable year, you are eligible to make catch-up contributions. In addition, depending upon your income level, you may be able to deduct all or a portion of your contributions.


If you're making a current year contribution, you may make it to the Roth or the Traditional IRA.



* Subject to annual cost-of-living adjustments (COLAs).