IRAs
An IRA, or Individual Retirement Account, is a great way to save and plan for your retirement. IRAs offer tax savings and the ability to compound your money through contributions and interest earnings.
Most IRAs fall into one of two categories - the Roth IRA or the Traditional IRA (see below). Within these main categories, there are many types of IRAs and Summit Bank can offer you a wide variety of options within each category. We offer both and will be happy to help you find the best IRA for you.
Requirements
- Minimum opening balance is $100.00.
How to get started: Contact your branch and talk to your bankers. They will sit down with you and go over all the options, take your needs and goals into account and help you make an informed choice that is best for you. See Rates
The Roth and Traditional IRAs
- The ROTH IRA: The Roth IRA allows only nondeductible contributions and features tax-free withdrawals for certain distribution reasons after a five year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a traditional IRA. You are eligible to establish a ROTH IRA if you or your spouse has compensation and your modified adjusted gross income does not exceed certain limits.
- The Traditional IRA: The Traditional IRA allows you to defer taxes on the earnings on your contributions until they are withdrawn. Also certain contributions are tax-deductible in the tax year for which you make them. You are eligible to establish a Traditional IRA if you are younger than 70 1/2 for the entire tax year and you or your spouse have compensation.
