Individual Retirement Accounts (IRAs)
Secure Your Future With An Individual Retirement Account
Tioga State Bank offers Traditional and SEP IRAs. With Traditional and SEP IRAs, earnings grow tax deferred until withdrawn. Tioga State Bank also offers ROTH IRAs, which feature tax-free qualified disbursements.
IRAs can have potential tax savings benefits, including the ability to deduct qualified contributions from taxable income and possibility of deferring taxes until retirement. The chart below shows how much you may be able save each year. Consult your tax advisor to review the tax deductible status of an IRA.
IRA Tax Savings Potential Chart
| IRA Deductible Contribution Amount | 15% Tax Bracket Savings | 28% Tax Bracket Savings | 31% Tax Bracket Savings | 36% Tax Bracket Savings | 39.6% Tax Bracket Savings |
|---|---|---|---|---|---|
| $500 | $75 | $140 | $155 | $180 | $198 |
| $1,000 | $150 | $280 | $310 | $360 | $396 |
| $2,000 | $300 | $560 | $620 | $720 | $792 |
| $2,250 | $337 | $630 | $697 | $810 | $891 |
| $4,000 | $600 | $1,120 | $1,240 | $1,440 | $1,584 |
IRA Rollovers
IRA Rollovers are a beneficial option when changing employers. If you are retiring or changing jobs and anticipate withdrawing money from your employer’s retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan. You can ask your employer to arrange for a “direct rollover” of your money into a new IRA account with us, or you can do it yourself with an IRA-to-IRA rollover.
You must complete the rollover within 60 days from the date you receive the assets from your old IRA in order to qualify and not pay the mandatory 20% withholding and possibly other penalties as well.
Blue Ribbon Savings Account
The Blue Ribbon Savings Account offers a variable rate, and can be opened with as little as $50.
The information provided is not intended to be legal or tax advice. You should consult your attorney or tax advisor for information that relates to your specific circumstances.
If you would like to open an account, have any questions, or want to learn more…
Contact us online, by phone at 888-303-4TSB or visiting us at a TSB office location.