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 With Traditional and SEP IRAs, earnings grow tax deferred until withdrawn.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.
You might be able to save on your present taxes with an Individual Retirement Account, by deducting your qualified contributions from your taxable income. Many people can deduct all or part of their IRA contributions from current income taxes. The deductible amount depends on your income, marital status and whether you’re an active participant in an employer sponsored plan as defined by the Internal Revenue Service. With an Individual Retirement Account, you may also be able to defer taxes until you retire when you will probably be in a lower tax bracket. The chart below shows you how much you may be able save each year. Consult your tax advisor to review the tax deductible status of an IRA. Regardless of the amount you’ll be able to save now on taxes, an IRA is a smart way for you to save for a secure retirement.
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|
If you’re changing employers, an IRA Rollover makes sense. 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.
Is an IRA right for you?
Call one of our Customer Service Representatives today at (888) 303-4TSB (4872) for more information about opening a new IRA or an IRA Rollover. At Tioga State Bank, IRA accounts can be established with a Certificate of Deposit or a Blue Ribbon Savings Account.
Certificates of Deposit
Tioga State Bank offers many Certificate of Deposit options, including a broad range of maturity dates and a choice of interest-payment options.
Blue Ribbon Savings Account
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.