Traditional/ROTH IRA – Altoona, PA & Duncansville, PA
from Investment Savings Bank
Uses:
An IRA gives working individuals a simple way to save for retirement with easy access.
Liquidity:
Funds can be withdrawn by individuals 59 1/2 years or older at any time without penalty. Individuals under 59 1/2 years can withdraw without government penalty if all the funds are reinvested in another IRA within 60 days. If the funds are not re-invested, the government imposes a 10% penalty. The bank imposes a penalty for early withdrawal from a certificate prior to maturity. IRS offers some exceptions for early withdrawal.
Benefits:
- Regular/spousal tax-year contributions are always tax-free and penalty-free when distributed.
- Conversion Contributions are tax-free and penalty-free if the distribution is a “qualified distribution”.
- Interest earned on a Roth IRA is tax-free and penalty-free if the distribution is a “qualified distribution”.
- Supplements Social Security income after retirement.
- Access to funds at any time. (Individual situations would determine if penalties would be appropriate to distributions).
Availability:
Any person with earned income over the age of 18.
Minimum Investment:
Varies depending on term of Certificate of Deposit chosen by customer. Ranges from $100.00 to $500.00
Maximum Investment:
Any working individual under the age of 50 is eligible to contribute $7,00.00 annually, if their Modified Adjusted Gross Income (MAGI) meets the regulated requirements. Any working individual age 50 or older is eligible to contribute $8,000.00 annually, if their Modified Adjusted Gross Income (MAGI) meets the regulated requirements. No limit on amounts transferred or rolled-over from existing IRA’s or Qualified Retirement Plans. Contribution limits aggregated between Roth & Traditional IRAs.
Insurance:
All funds are insured up to $250,000 per individual by FDIC.
Fixed Individual Retirement Account (IRA) Certificate of Deposit
| LENGTH OF TERM | MINIMUM BALANCE TO OBTAIN APY | INTEREST RATE | ANNUAL PERCENTAGE YIELD | DISCLOSURE |
|---|---|---|---|---|
| 1 Year | $500.00 | 0.25% | 0.25% | View 1 Year (IRA) CD Disclosure |
| 18 Months | $500.00 | 3.25% | 3.29% | View 18 Months (IRA) CD Disclosure |
| 2 Year | $500.00 | 0.40% | 0.40% | View 2 Year (IRA) CD Disclosure |
| 3 Years | $500.00 | 0.50% | 0.50% | View 3 Years (IRA) CD Disclosure |
| 4 Years | $500.00 | 0.50% | 0.50% | View 4 Years (IRA) CD Disclosure |
| 5 Years | $500.00 | 0.50% | 0.50% | View 5 Years (IRA) CD Disclosure |
Penalty for Early Withdrawal if under 59 1/2 years old.
*** RATES SUBJECT TO CHANGE AT ANYTIME WITHOUT NOTICE ***
Floating Individual Retirement Account (IRA) / Education Savings (ESA) Certificate of Deposit
| LENGTH OF TERM | MINIMUM BALANCE TO OBTAIN APY | INTEREST RATE | ANNUAL PERCENTAGE YIELD | DISCLOSURE |
|---|---|---|---|---|
| 18 Months | $100.00 | *4.00% | *4.06% | 18 Months Floating IRA/ESA CD Disclosure |
*The rate may change after the account is opened.
Penalty for Early Withdrawal if under 59 1/2 years old.
*** RATES SUBJECT TO CHANGE AT ANYTIME WITHOUT NOTICE ***
