Individual Retirement Account
- Traditional and Roth accounts are available
- Higher interest rates
- No minimum deposit or maintenance fees
- Safe investment options through savings and certificate
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Types of IRA Accounts
Traditional IRA Account
A traditional IRA is a tax deferred. This means that you can contribute money before it's taxed, and you don't owe taxes on those contributions or your earnings until you withdraw the money. You will likely be earning less when you begin to withdraw from your IRA, which means you may end up being in a lower tax bracket and paying less overall in taxes. If you qualify, you may also be able to deduct your contributions to your IRA on your federal income tax return, which can lower how much you will need to pay.
Roth IRA Account
A Roth IRA is not tax-deferred, which means you owe taxes when you contribute the money to the account. But that means you won't have to worry about paying them later, and your contribution can grow tax-free. Withdrawals of contributions and earnings are tax-free if your account has been open for at least five years and you're at least 59 and a half.
Withdrawing the Money
If you want to make a withdrawal before you're 59 and a half, you'll have to pay a 10% tax penalty. On the other hand, you must begin to take required minimum distributions (RMDs) after turning 70 and a half (or 72 if you were born after June 30, 1949) if you have a traditional IRA. This is the minimum amount that you're required to withdraw each year. RMDs are taxed as ordinary income. If you have a Roth IRA, you won't have an RMD.
Contribution Limits
2022 Contribution Limit is $6,000 with age 50 or older; you can add an annual catch-up contribution of $1,000 (Listing 2022 for anyone that still can-do prior year (till 4/15)
2023 Contribution Limit is $6,500 with age 50 or older; you can add an annual catch-up contribution of $1,000
2023 Required Minimum Distribution (RMD) increases to age 73
Open an IRA Account Today!
IRA applications are transacted via secure email or in person. Please give us a call at (606) 329-7876 for complete details.
1 Gather your info, including your government-issued ID and Social Security number
2 Fill out your application in person at any location or call to conduct your transaction online
3 Once your application is approved, fund your account by setting up online transfers via Members Choice Mobile or Online banking