Retirement

IRAs can be used to fund your retirement, or to supplement your Social Security or company retirement plan. Because tax laws and eligibility requirements vary, we suggest you consult with your tax advisor to determine which IRA is best for you.

The money you put in a Traditional IRA grows tax-deferred until you withdraw it in retirement. Because you don't have to pay tax on the earnings that accrue each year, you can accumulate more money faster in an IRA than in an ordinary taxable account -- even if the IRA and non-IRA investments earn the same rate of return.

Penalty-free withdrawals are permitted before age 59-1/2 for a first-time home purchase (up to a $10,000 withdrawal), higher education expenses, or in the event of disability or death.

Unlike a traditional IRA, Roth IRA contributions are made with after-tax money (not tax-deductible). However, withdrawal of earnings and distributions upon retirement are tax-free. So if you remain in the same tax bracket (or higher) at retirement, Roth IRAs allow you to accumulate more money than tax-deductible IRAs do.

So, you’re probably wondering, which is better? The answer depends on your financial situation and your retirement goals. If you’re not sure, check with an adviser before you invest.

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A SEP plan is an employer-contribution retirement plan for self-employed persons or small businesses. Employers establish a SEP plan by opening individual accounts called SEP-IRAs for each eligible employee. For 2007, your employer may contribute up to $45,000 or 25% of your compensation to your SEP-IRA.

• Small Business or Self-Employed Retirement Option

• Yearly Contributions range from 0-25% of earned income

• Employer may receive deduction benefit

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The Coverdell Education Savings Account (CESA) is a great way to help save for a child's education expenses. It allows after-tax contributions up to the annual limit to be made for the child until he or she reaches the age of 18. The earnings in the account are completely tax free if the money is used to pay qualified education expenses such as tuition, equipment, fees -- even room and board, anytime before the child reaches the age of 30.

Putting money into a Coverdell Education Savings Account is easy and you don't have to be the child's parent to contribute. Friends and family members can make contributions to a Coverdell Education Savings Account as long as the maximum contribution per child is not exceeded. Contributions can be made to the CESA at any time throughout the year until the child's 18th birthday.

• Annual Contributions per child is $2,000.

• The Coverdell Education Savings was expanded to include education expenses from kindergarten through 12th grade as well as higher education expenses.

• Contribution deadline are the contributor's tax filing deadline (not including extensions), generally April 15th.

• More individuals are eligible to make contributions.

• Age restrictions do not apply for children with special needs.

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Questions?

You can reach a Retirement Program Specialist
by calling (412) 856-0352 (Ext. 225)
during regular business hours

• There is no annual fee to have an IRA with Standard Bank

• All IRS IRA rules and regulations apply

• You may access our rates anytime by calling your nearest Community Banking Office or by clicking on Current Rates from the navigation panel

• FDIC Insured

*The above Investments are available in either a Statement Savings Account (Short-term investments) or Certificate of Deposit from 12 to 120 months.

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Retirement
IRA | 401K | 403B Calculator - How much will I accumulate by retirement?
Roth vs. Traditional IRA Calculator - Which retirement plan is right for you?
Simple Retirement Calculator - How much do you need to retire?
Retirement Payout Calculator - How long can you withdraw a fixed amount?

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Disclosure | Frequently Asked Questions