Individual Retirement Accounts (IRAs)

It’s never too early to begin planning for retirement.  At Amegy Bank, we offer competitive IRA products designed to help you meet your retirement goals.

What is an IRA?

An Individual Retirement Account (IRA) is a tax advantaged personal savings plan that is designed to encourage individuals to save for retirement. 

There are two basic types of IRAs, Roth and Traditional.  While both are designed to help you save for retirement, each one has unique benefits and eligibility requirements.

Roth IRA contributions are made with money that has already been taxed.  Your money grows tax-free and your withdrawals are tax-free when you retire (certain qualifying conditions apply, see tax advisor before making withdrawals).  Effective January 1, 2010, the income restriction for conversion to a Roth IRA is being lifted, making anyone eligible to convert to a Roth IRA regardless of income level.

Normally, conversion to a Roth IRA requires that you pay income tax on the full amount of any tax deferred asset you convert in the year the asset is converted. Under special legislative rule for conversion completed in 2010, you have the option of spreading the tax liability over 2011 and 2012. You may also choose to complete recognition of the tax liability in 2010. Check with your tax advisor to determine which option is best for you.

With a Traditional IRA, all or part of your contributions may be taken as a tax deduction when filing your tax return.  Deductible contributions and interest are only taxed when you make withdrawals.
 

Not sure which option is best for you?  Please contact a Tax or Financial Advisor to determine the IRA that is right for you.

Why is an IRA an important part of retirement planning?

It is estimated that the average individual may need income equivalent to 70-85% of their current income to meet their income needs during retirement.  While participating in an employer sponsored 401(k) is an excellent idea it may not be enough to accumulate the savings you need.  You are allowed to contribute to both a 401(k) and an IRA.

There are several investment options available to you. With an Amegy Bank IRA, you get the peace of mind that your retirement contributions are FDIC insured up to $250,000 per owner. So not only is your money safe, the return on your money is also guaranteed.

If you are interested in a more aggressive strategy and have a tolerance for more risk with your contributions, our Personal Investment Advisor Group can walk you through an array of other retirement savings options. 

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	Traditional IRA	Roth IRA
Earnings	Earnings are tax-deferred until withdrawn. IRS early withdrawal penalties may apply.	Earnings grow tax-free as long as you meet the requirements.
Contributions	Contributions may be tax-deductible depending on your income and other factors.  You may no longer make contributions after age 70 ½.  Maximum contribution for 2009: $5,000 ($6,000 ages 50+)	Contributions are not tax-deductible.  You may continue making contributions after age 70 ½ if you have earned income.  Maximum contribution for 2009: $5,000 ($6,000 ages 50+)
Income Requirements	No income limit to make contributions, however you must have earned income to contribute.	Your adjusted gross income must be below certain limits depending on your tax filing status.  Note: Beginning 2010, this requirement is being eliminated.
Distributions	Distributions are required at age 70 ½.	You are not required to take mandatory distributions at   any age.

 
Once you’ve determined which IRA type meets your individual needs, you can then choose between the following IRA options:

	IRA Certificate of Deposit	Market Rate IRA
Recommended if you want	A great fixed rate with a choice of terms.	An account that allows convenient IRA contributions and distributions.
Minimum Opening Deposit	$250	$250
Terms	30 days to 5 years	N/A
Interest Rate	Fixed rate based on the term	Variable Rate
Tiers	N/A	$0 - $9,999 $10,000 - $24,999 $25,000 - $49,999 $50,000 - $99,999 $100,000 - $249,999 $250,000 & over
Deposits	Deposits can only be made at account opening or at maturity.	Deposits can be made at any time.
Withdrawals	Convenient distribution choices upon reaching age 59 ½   Substantial IRS penalty for early withdrawals	Convenient distribution choices upon reaching age 59 ½   Substantial IRS penalty for early withdrawals

Visit your nearest Amegy Bank location for assistance with opening an IRA so you can start maximizing your retirement savings today

Amegy Bank offers a variety of retirement solutions.
 
Amegy Bank offers FDIC insured IRA money market and IRA certificates of deposits. You may also choose non-FDIC insured products, such as mutual funds or stocks. Just ask your Amegy Banker to set up an appointment with a representative from Amegy Investments, Inc.

No Annual Fee

• Low minimum opening balance
• CD terms ranging from 30 days to 5 years
• A variety of banking center locations to open your account
• Make automatic contributions from an Amegy checking, savings or money market account
• Choose deposit or investment accounts based on your individual needs
• Earn interest rates on all eligible deposit accounts linked to MyLife Retirement Package

We can help you:

• Open an IRA CD or Market Rate IRA acccount
• Consolidate your 401k(s) and/or IRA(s)
• Plan distributions to help you manage your retirement income
• Execute a plan that you and your Financial Consultant design
• Maximize your retirement savings and more

MyLife Retirement Relationship Package

You can enjoy additional benefits by consolidating your retirement accounts at Amegy Bank. When you have a MyLife Retirement Checking account and an IRA CD or a Market Rate IRA account, you will receive a premium rate applied to all personal, interest-bearing checking, savings and money market accounts as long as the MyLife Retirement Relationship requirements are met.

Amegy’s Retirement Resource Center

Get access to tools and resources you need to help you plan for a comfortable retirement. Retirement advice, relevant news/articles and investment calculators are all at your finger tips at www.amegyretirementcenter.com.

**New for 2010 – Roth Changes

Effective January 1, 2010, the income restriction for conversion to a Roth IRA is being lifted, making anyone eligible to convert to a Roth IRA regardless of income level.

Normally, conversion to a Roth IRA requires that you pay income tax on the full amount of any tax deferred asset you convert in the year the asset is converted. Under special legislative rule for conversion completed in 2010, you have the option of spreading the tax liability over 2011 and 2012. You may also choose to complete recognition of the tax liability in 2010. Check with your tax advisor to determine which option is best for you.