A Hanover Community Bank Individual Retirement Account ( IRA ), is one of the best ways to invest money over the long term. With an IRA account, your funds are invested in Certificates of Deposit with fixed terms that are FDIC insured.
All of our IRAs offer interest - plus, each IRA has its own tax advantages.
- You can contribute up to $5,000 a year or 100% of your earned income, whichever is less. If you are married, you can contribute up to $10,000 or 100% of your combined income, whichever is less, between each spouse's IRAs.
- If you are age 50 and over, you may contribute up to $6,000 per year.
- Minimum distributions are required beginning at age 70-1/2. If you receive a distribution from a pension, 401(k), or other company retirement plan, you can roll the entire amount into an IRA and defer the taxes until withdrawal.
- Contributions to Traditional IRAs and the earnings on them are not taxed until withdrawal. At that time, withdrawals are taxed at your income tax rate. 10% penalty taxes may apply if you withdraw before age 59-1/2.1
Traditional IRA Calculator - How can contributing to a regular IRA help you in your retirement?
1 Please consult a tax advisor to determine how federal, state, and local tax laws affect IRA deductibility for you and whether a Traditional or Roth IRA is best for your situation.
All Individual Retirement accounts held at Hanover Community Bank are added together and the total is insured by the FDIC for up to $250,000.