Funding Your Future
Retirement is inevitable. Make the most of this milestone by setting up a traditional or Roth IRA so that you can enjoy the retirement you deserve.
IRA Features
- Competitive interest
- Traditional and Roth IRA options
- Tax Advantages1
- No setup fees
- No monthly or annual maintenance fees
- Annual contribution limit of $6,500 for 2023
- Additional $1,000 “catchup” contribution allowed for ages 50+
- Funds can be used to purchase CDs within IRA
- $100 minimum deposit to open Money Market Investor IRA
- $500 minimum deposit to open IRA CD (contributory or non-contributory)
Retirement Savings Calculator
Traditional vs. Roth
There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at the time of retirement.
| Traditional IRA | Roth IRA | |
|---|---|---|
| Tax Effect2 |
Contributions may be tax deductible. Earnings are tax-deferred. Distributions are taxable. |
Contributions are not deductible. Earnings are tax-deferred. Qualified distributions are tax-free. |
| Contribution Limits for 2023 | 100% of earned income up to $6,500 (or $7,500 if age 50 or older) reduced by Roth IRA contributions. | 100% of earned income up to $6,500 (or $7,500 if age 50 or older) reduced by traditional IRA contributions. |
| Contribution Deadlines |
Prior year contributions (for 2022) may be made between Jan. 1 and April 18, 2022. Current year contributions may be made from January 1 and December 31, 2023. |
Prior year contributions (for 2022) may be made between Jan. 1 and April 18, 2023. Current year contributions may be made from January 1 and December 31, 2023. |
| Eligibility | Individuals who have earned income. | Individuals who have earned income and fall within the Modified Adjusted Gross Income (MAGI) limits |
| Minimum Distribution Requirements for 2023 | Required minimum distributions must be taken beginning the year in which an individual turns 73. | None |
| Transfers | IRA funds may be transferred from an existing traditional IRA at another financial institution to Tri City National Bank. Consult a tax adviser for tax implications. | IRA funds may be transferred from an existing traditional IRA at another financial institution to Tri City National Bank. |
| Rollover | Funds from an Employer Sponsored Retirement Plan (e.g., 401(k) Plan) or traditional IRA may be moved into a traditional IRA. Consult a tax adviser for tax implications. | Funds from an Employer Sponsored Retirement Plan (e.g., 401(k) Plan) or a Roth IRA may be rolled into a Roth IRA. |
Individual Retirement Accounts
| Contributory / Non-Contributory | Term | Interest Rate | APY* | Minimum to Open |
|---|---|---|---|---|
| Contributory | 18 Months (Variable**) | 3.92% | 4.00% | $500.00 |
| Non-Contributory | 12 Months (Fixed) | 0.05% | 0.05% | $500.00 |
| Non-Contributory | 18 Months (Fixed) | 0.05% | 0.05% | $500.00 |
| Non-Contributory | 24 Months (Fixed) | 0.10% | 0.10% | $500.00 |
| Non-Contributory | 30 Months (Fixed) | 0.10% | 0.10% | $500.00 |
| Non-Contributory | 36 Months (Fixed) | 0.20% | 0.20% | $500.00 |
| Non-Contributory | 48 Months (Fixed) | 0.25% | 0.25% | $500.00 |
| Non-Contributory | 60 Months (Fixed) | 0.40% | 0.40% | $500.00 |