Retirement Accounts

Retirement Accounts

You may want to consult a tax advisor regarding potential benefits of establishing and contributing to retirement accounts.

Traditional IRA

Interest is tax deferred as it accumulates and compounds, allowing your retirement savings to grow much faster than traditional savings.  If your contribution is tax deductible, you receive two tax benefits: 1) immediate tax savings on your earned income and 2) deferred tax on interest earned until the funds are distributed.  Generally, you may contribute up to $5,000 or $6,000 of earned income annually to a traditional IRA until age 70 1/2.

Roth IRA

Contributions are made with after-tax dollars.  The interest earnings on the Roth IRA are not presently taxed, and if certain distribution rules are met, will never be taxed.  You are not required to withdraw any distributions from a Roth IRA while you are alive.  Generally, you may contribute up to $5,000 or $6,000 of earned income annually to a Roth IRA even if you are 70 1/2 or older.  A Roth IRA is a great investment.


A SEP is a retirement plan established by an employer.  There are significant tax advantages that will be realized by both the employer and the employee.  Due to the effects of compounding, the SEP funds can grow into a sizable nest egg for retirement.

The FDIC also insures the interest in all your retirement accounts at our institution up to a total of $250,000.  This insurance coverage is provided from any other non-retirement accounts you may have with us.