Retirement Accounts

Contact a Branch Office Investment Services

Individual Retirement Account (IRA)

Investing in your future with a secure retirement savings method. Contributions are made on a pre-tax basis, making personal tax planning a bit easier.

Roth Individual Retirement Account (Roth)

A special retirement account where you pay taxes on money going into your account and then all future withdrawals are tax-free.

All IRA accounts established with Edgewater Bank are held in a single certificate of deposit or multiple certificates of deposit to meet both your retirement planning and investing goals. Edgewater offers certificates of deposit with a range of terms from 3 months to 60 months.

Edgewater Bank will provide you with all the appropriate tax information so you may properly track and report your retirement accounts.

IRA Comparison

 

Traditional

Roth

Eligibility Age

You must be under age 70½ to contribute to a traditional IRA

You can contribute to a Roth IRA at any age

Income

Requires earned income and contributions can be made regardless of your income

Requires earned income and there can be income restrictions for contributions.*

Tax Advantages

Funds may grow tax-deferred

Funds may grow tax-free

Contributions

May be Tax-Deductible*

Not Tax-Deductible

Distributions

Distributions are taxed per your income bracket at the time of distribution.

Distributions can be tax-free and/or penalty-free if the account has been open for at least five years

Early Withdrawals

Unless an exception applies, withdrawals before age 59 ½ may be subject to a 10% penalty

Unless an exception applies, non-qualified withdrawals may be subject to taxation of earnings and a 10% additional tax

Required Minimum Distributions (RMDs)

RMDs starting at age 70½

No RMDs during lifetime of original owner

Maximum Contribution*

Currently $5,500 ($6,500 if you are age 50 or older) or 100% of employment compensation, whichever is less

Currently $5,500 ($6,500 if you are age 50 or older) or 100% of employment compensation, whichever is less

Contribution Deadline

Generally, April 15th of the following year for any given tax year

Generally, April 15th of the following year for any given tax year

*Different factors can limit your maximum contributions and what can be deducted from your taxable income.

This chart is for informational purposes only and Edgewater Bank is not responsible for any errors and omissions. The information is subject to change without notice and should not be construed as a recommendation or investment advice. Please consult your tax or legal consultant for questions concerning your personal tax or financial situation.

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