Investment products provided by CB&T’s Wealth Management & Trust services department are not FDIC insured, may lose value, are subject to risk, are not bank guaranteed, and are not deposits.
Take charge of your retirement plan
Whether retirement is in sight or you're just getting started with the planning, adding an IRA to your strategy can make the different in how comfortable you are when you retire. Start saving now outside of your 401(k) with an IRA to dramatically increase your income.
What is an IRA?
An IRA, or an Individual Retirement Account, is essentially a savings account with big tax breaks, which makes it an ideal way to save for your retirement. Unlike a 401(k) that is provided by your company, an IRA is an account that you open up on your own.
IRAs are often more ideal than a regular savings or Money Market account because they enjoy the benefit of tax-deferred interest. This allows your retirement savings to grow faster in an IRA than they would in a similar taxable account because you can earn tax-deferred interest on your deposits in an IRA - right up to the time you begin withdrawing funds.
See below to learn more about the different types of IRAs!
Your money, your future
Unlike most other pension plans, you control your IRA investments. In fact, your IRA is 100 percent yours from the day you open it.
You may deposit any amount up to 100 percent of your compensation or $6,000 per year - whichever is less. For individuals 50 years or older, you may deposit up to $7,000 per year. Compensation is the salary or wages you receive as an employee. If you are self-employed, compensation is your net income for personal services performed for the business. Passive income such as interest, dividends and rental income is not considered compensation for purposes of funding an IRA.
Types of IRAs
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Traditional IRA
A traditional IRA will allow you to defer paying taxes on your growth until you start taking your distributions. Also, if you meet certain qualifications, your contribution to a traditional IRA is tax deductible.
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ROTH IRA
Contributions are made with after-tax dollars, so there is no immediate tax benefit, but all earnings grow tax-free for the life of the account. This will provide you with considerable long-term tax advantages.
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Rollover IRA
If you've changed jobs, retired, or have reached an age where your current plan allows, you have the ability to move your retirement funds out of the plan provided by your employer and "roll it over" into your own individual account. This provides flexibility to invest to your preferences, and our professional management and investment expertise in our Wealth Management & Trust department can help guide you to the right solution for your future.
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Inherited IRAs
When a loved one passes away, their retirement assets can pass to their heirs in a variety of ways, including this one. Depending on your relationship to the departed, different rules will apply, but the tax-deferred status of the funds remains and we can help you understand the best way to invest these funds and ensure they provide for you as your loved one intended.
Ready to discuss?
What is the best financial strategy for you and your retirement goals? Our experienced Trust Officers would love to discuss your unique financial situation! Give us a call today at 254-753-1521, or complete the form below and a Trust Officer will reach out to you!