Opening an IRA is a very secure and smart way to save for your future AND it is easy to do.
IRAs at The Bank of Bennington are insured
for up to $250,000 by the FDIC. If you set one up with
auto-deposit from your savings or checking account, you will
increase your savings—and your future security—effortlessly.
Individual Retirement Arrangements (IRAs) are the most
basic sort of retirement account but the choices among IRAs
can be confusing—different plans offer different options
based on income and eligibility criteria. The Bank of
Bennington has IRA Service Professionals who are happy to
help you understand the options so that you can choose the
plan that best suits your needs.
To find out more about your retirement planning options
and for complete details regarding eligibility requirements,
visit the IRS.gov website for Retirement Plans
or come in and talk with one of our IRA professionals.
A Traditional IRA is a personal savings
plan that gives you tax advantages for saving for
retirement. Contributions to a Traditional IRA can be
tax-deductible for the year that you make the
contribution. That means that you can reduce your current
year taxable income and for individuals who are in a
higher tax bracket, this can be a reasonable savings.
Contributions are made on a pre-tax basis and are
considered income in the year they are distributed.
Distributions can be subject to penalty if withdrawn
before the age of 59 ½ and are mandatory after the age of
73. If you have earned income and expect to be in a lower
tax bracket when you retire, a Traditional IRA may be best
choice for you.
A Roth IRA is a personal savings plan with
features that are opposite of a Traditional IRA.
Contributions to a Roth IRA are not tax deductible and do
not offer current tax year benefits. Eligible
distributions from Roth IRAs are not included as income in
the year they are withdrawn. Distributions are not
required when you turn 72—this will be important as people
live and work longer. If you have earned income and expect
to be in a higher tax bracket when you retire, a Roth IRA
may be the best choice for you.
A SEP is a Simplified Employee Pension
plan that gives employers a simplified way to make
contributions toward their employees and their own
retirement.
A SIMPLE IRA is a Savings Incentive Match
Plan for Employees that gives small employers a simplified
method to make contributions toward their employees’
retirement and their own retirement. Under a SIMPLE IRA
plan, employees can make contributions and the employer
can make matching or non-elective contributions.
Distributions are considered income in the year they are
distributed.
