IRA, Roth IRA, SEP
and Rollover Accounts

Retirement Savings Plans for Your Future

Planning for the future requires a sensible strategy focused on your goals. When you're saving for retirement, our Individual Retirement Accounts (IRA) provide solutions with solid growth opportunities. No matter what your current income level, you can find a retirement plan for your future. Each option provides different benefits, so consult your tax advisor for complete details about tax advantages.

What is an IRA?

At its most basic description, an Individual Retirement Account (IRA) is just a way to save money for retirement. That seems simple enough, right? More precisely, an IRA is a specific type of savings account (or group of savings accounts) that has been designed to help people set aside funds for their retirement with certain tax advantages that reward the savings behavior. When filing taxes, you may note that the IRS refers to these accounts as Individual Retirement Arrangements, rather than Accounts. Most financial institutions, however, refer to these as Accounts.

The general basics of IRA accounts are:

• All IRA accounts offer tax benefits, incentivizing saving for retirement
• There are earning limits and caps on how much can be set aside each year in these accounts
• An IRA is not the same thing as a 401K, has separate contribution limits and can be used as another vehicle to save for retirement
• There are rules for withdrawals and penalties may apply in certain criteria is not met

Selecting the Right Retirement Vehicle to Meet Your Needs

Traditional IRA

• Contributions reduce taxable income on annual returns
• Taxes are deferred until you withdraw the funds from the account, and you will be taxed on both contributions and earnings on the deposits
• Max contribution limits are based on your income, whether or not your work offers a retirement plan, and also depending on whether you file taxes single or jointly
• Penalties may be assessed if funds are withdrawn before age 59 1/2 
• Better for immediate tax reduction / tax break
• For more information on a Traditional IRA, including restrictions, limits and tax returns, please visit the IRA page on the IRS website.

SEP IRA - Also known as Traditional IRA - SEP Contributions

• Simplified Employee Pension (SEP) is an IRA that is used by self-employed or small business owners
• Just like a Traditional IRA, contributions reduce taxable income on annual returns and savings earnings are tax deferred
• Small business owners must match their own percentage of contributions for eligible employees
• Higher contribution limits than Traditional IRA. Currently (as of 2020) capped at 25% of compensation
• Better for immediate tax reduction / tax break
• For more information on a SEP IRA, including restrictions, limits and tax returns, please visit the SEP IRA page on the IRS website.

Roth IRA

• Contributions are not tax deductible, but can be withdrawn tax-free when you retire
• You are not taxed on the growth of these Roth IRA savings
• Contributed funds can be withdrawn from a Roth IRA at any time, without penalties, but there are rules about withdrawals of investment earnings or certain funds that you may have transferred to your Roth IRA
• Limits on use of Roth IRA and contributions depend on income, after adjustments
• For more information on a Roth IRA, including restrictions, limits and tax returns, please visit the Roth IRA page on the IRS website.

Rollover IRA

• Create a new IRA by transferring your 401(k), or other retirement account, into an IRA so it keeps working for you
• Can help avoid taxes on the transfer of the funds
• Typically moved from 401(k) when you leave an employer and no longer have contributions to that 401(k) under the same employer
• For more information on establishing a Rollover IRA, including restrictions, limits and tax returns, please visit the Rollover IRA page on the IRS website.

Getting Started

Setting up an IRA

Getting started is as easy as following one of the links above.

• After following the link, Select "Open an IRA/HSA"
• Then select the account type you wish to open
  • Traditional IRA
  • Traditional IRA - SEP Contribution
  • Roth IRA
• You will need your SSN and the SSN of any beneficiaries you are adding
• New IRA accounts are typically set up within 1 business day