Traditional IRA | Roth IRA | CESA | SEP | Small Business Retirement Plan
In today’s fast-paced environment, worrying about your retirement savings should be the least of your concerns. Here at Standard Bank, we offer a retirement program containing several products* that could make a difference on your bottom line. To determine which IRA is right for you, it is important to consider your personal goals and future needs. You should consult your tax advisor for more detailed tax information regarding the various IRA options.
Choosing an IRA
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.
Traditional IRA
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.
Roth IRA
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 advisor before you invest.
(SEP) Simplified Employee Pension
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 2011, your employer may contribute up to $49,000 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
(CESA) Coverdell Education Savings Account – formerly the Education IRA
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 15
- More individuals are eligible to make contributions
- Age restrictions do not apply for children with special needs
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 viewing current deposit product rates
- 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.
Loading ...
Welcome to our new website! You may have heard us say…”At Standard Bank, It’s All About You.” That’s because it is. We offer a different kind of banking experience. We are committed to relationship banking, and we want to be the only bank for all of YOUR banking needs. As we approach our 100th anniversary, we want to let you know that you, our customers, have been our most important asset, and we are committed to upholding the same tradition as we move forward.
