Individual Retirement Account (IRA)
It's never too early to start saving for your retirement. In today's economy, it's important to have money set aside for retirement as the costs of living increase. A person who retires at 65 and lives to 90 will pay the bills without a paycheck for 25 years! Even if you have a 401(k) at work, there are ways to save more for your golden years. One way to give your savings that additional boost is by opening up an Individual Retirement Account with Sound Community Bank.
An IRA will allow you to build your savings in a federally insured tax-advantaged account.* The Federal Deposit Insurance Corporation insures all bank deposits up to $250,000 and it covers IRAs for an additional $250,000!
The virtue of an IRA lies in its ability to expand your savings with tax-advantaged growth. If you leave your money untouched, your earnings will grow faster than they would in an equivalent taxable account. You can even roll over your 401(k) from a previous employer into an IRA with Sound Community Bank. There are two types of IRAs available to chose from - Traditional and Roth.
Traditional IRA
A Traditional IRA allows you to defer taxes on your IRA account earnings. In addition, you may be able to deduct some or all of the contribution from your taxes if you are eligible.Roth IRA
With a Roth IRA your contributions are not tax deductible, but your funds grow tax-free when you hold them for at least five years and begin taking distributions after age 59 1/2. To be eligible, a single taxpayer's adjusted gross income must be less than $110,000 and a couple filing jointly must have income less than $160,000.Contribution Limits 2009
The IRA contribution limits are unchanged for 2009. They remain at $5,000.00 for those under 50 and $6,000 for those age 50 and above.IRA distributions requirements waived for 2009: Click here for details.
Start saving today to make the most of your money tomorrow - speak with a Client Service Representative for more details.
*Taxes are due upon withdrawal at ordinary income tax rates. Withdrawals prior to age 59 1/2 may be subject to a 10% tax penalty.
