Hiawatha National Bank offers the following types of Retirement Savings Accounts:
A Traditional IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement.
- Consult your tax professional regarding the contribution age limit and earned income requirements to make sure you are eligible to establish and make contributions to a Traditional IRA Retirement account.
- Contributions you make to a traditional IRA may be fully or partially deductible, depending on your circumstances and generally, amounts in your traditional IRA (including earnings and gains) are not taxed until distributed.
The Roth IRA provides no deduction for contributions, but instead provides a benefit that isn't available for traditional retirement accounts:
- If you meet certain requirements, all earnings are tax free when you or your beneficiary withdraw them.
- Other benefits include avoiding the early distribution penalty on certain withdrawals, and eliminating the need to take minimum distributions after the required age set by the IRS. Consult your tax professional.