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).
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Earnings are tax-deferred until withdrawn.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
IRA Money Market
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
