Individual Retirement Accounts
Based on your specific investment objectives, you can choose among three IRAs at INSOUTH Bank.
IRAs offer important tax-savings advantages and other benefits that make them a most attractive savings instrument. With a minimum of $100.00, you can open an IRA for 1 to 3 years, and choose between fixed and variable rate options.
Traditional IRA
An account that allows you to defer taxes on your earnings until they are withdrawn
- You may contribute 100% of your earned income, not to exceed $4,000 per year plus another $1,000 if you are over the age of 50.
- Certain contributions may be tax deductible in the year they are made, based on how much you earn and whether you or your spouse participate in a retirement at work
- Anyone with earned income can contribute; both spouses can each contribute, even if only one has earned income
- Your IRA grows tax-deferred until withdrawal, at which time withdrawals are taxed as ordinary income
- 10% early withdrawal penalty prior to 59 ½ years old; mandatory withdrawals start at age 70 ½ years
- Certain step-ups in your eligible annual amount apply if you are over 50 years old
- Other eligibility requirements may apply
Roth IRA
A nondeductible account that features tax-free earnings and withdrawals
- You may contribute 100% of your earned income, not to exceed $4,000 per year plus another $1,000 if you are over the age of 50.
- Roth IRA contributions are taxed in the year they are earned
- Roth IRA dollars grow tax-deferred until you withdraw money, and qualifying withdrawals are tax-free
- 10% early withdrawal penalty prior to 59 ½ years old, but you are not required to withdraw at 70 ½ years
- Other eligibility requirements apply
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Coverdell Education Savings Account
A savings plan for a child's higher education expenses.
- A nondeductible account with tax-free distributions
- If the distributions are used for higher education expenses, there are no taxes due on the interest earned.
- You may contribute up to $2,000 per year per child under 18 years old
- Other eligibility requirements apply
How much can you save? Use our handy Retirement Calculator to figure your future earnings
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