Individual Retirement Accounts (IRAs)
Hyperion Bank helps you save to achieve your retirement dreams
You've likely heard financial experts say "pay yourself first." This good advice means that saving for your future should be a priority--and a monthly habit, from your first job through retirement. Even if you "pay yourself" by contributing just a small amount each month, the savings you accrue can help you fulfill your retirement dreams later in life. Sticking to a savings plan, particularly when you start early, is one way to work towards achieving your retirement goals.
Saving in a tax-advantaged Individual Retirement Account (IRA) is a way to make your money work even harder for you by reducing--or even eliminating--your tax liability on the funds you pay yourself. Hyperion Bank offers both Traditional and Roth IRA accounts that are FDIC-insured up to $250,000. You can even open an IRA Statement Savings Account with a minimum deposit of just $50.
Tax-advantaged Traditional & Roth Individual Retirement Accounts (IRAs)
Individual Retirement Accounts can be a valuable part of any savings strategy. The federal government established IRAs to help individuals save for their own retirement by offering tax benefits to workers who contribute a portion of their earnings to their own "individual retirement plan." The IRS sets limits on how much you may contribute to your IRA in any given year. There is no minimum deposit amount required to open an IRA. Compare the benefits of a Traditional or Roth IRA, and consult your tax advisor or ask us to help you determine which IRA will best meet your personal tax situation and retirement goals.
Traditional or Roth IRA? Which is right for you?
|FEATURES||TRADITIONAL IRA||ROTH IRA|
|Pre-tax or Post-tax Contributions?||Contribute with pre-tax earnings||Contribute with post-tax earnings|
|Are withdrawals taxed?||Withdrawals are taxed as income||Withdrawals are tax-free|
|When can I contribute?||Up to age 70.5||You may contribute at any age|
|How much can I contribute to my IRA each year?||Maximum annual contribution for age 49 and under is $5,500; age 50 and up is $6,500; no minimum contribution requirements||Maximum annual contribution for age 49 and under is $5,500; age 50 and up is $6,500; no minimum contribution requirements; income requirements apply for single and joint tax filers--please ask us for assistance or consult your tax advisor to determine your eligibility|
|Contribution deadline?||Contributions must be made by the April IRS filing deadline for the previous tax year||Contributions must be made by the April IRS filing deadline for the previous tax year|
|Are IRA earnings taxed?||Earnings* grow tax-deferred until withdrawals, on the assumption that your tax liability will be less by the time you start taking withdrawals||Earnings* grow tax-free, provided your funds meet the federal five-year aging requirement|
|Required Minimum Distributions (RMDs)?||You must start taking RMDs in the year that you turn age 70.5||Roth IRAs have no RMDs during your lifetime|
|Early withdrawal penalties?||Withdrawals taken before age 59.5 may incur a 10% penalty||Withdrawals taken before age 59.5 may incur a tax on earnings, plus an extra 10% tax|
|Fees?||Hyperion Bank charges no fees to set up or maintain an IRA||Hyperion Bank charges no fees to set up or maintain an IRA|
|FDIC insured?||Up to $250,000||Up to $250,000|
|Other benefits?||If you are over age 50, you may be eligible to make additional "catch-up" contributions--ask your tax advisor|
Open your IRA today! Call 215.789.4200, email firstname.lastname@example.org or visit our office for assistance.
*See our Rate Schedule for interest information. Early withdrawals may incur penalties--check with your tax advisor for additional information.