An Individual Retirement Account (IRA) is a personal savings plan that, in many cases, provides income tax advantages to individuals saving money for retirement purposes. IRAs can also be established for educational purposes. An IRA may be set up at any time and contributions to it made as you like, in compliance with tax laws.
Key advantages of an IRA:
An IRA is a tax-advantaged way to grow your retirement fund. The most common types are Roth IRA and Traditional IRA, and both have tax advantages:
Contributions may be tax-deductible.
Investment earnings are tax-deferred until retirement, when you may be able to withdraw your money tax-free.
You choose the term of the CD: 6, 18 or 30 months. When the term is up and your CD reaches maturity, it will automatically renew. You can also choose to move the IRA to another account. Open an IRA with a minimum deposit of $100 and continue making contributions throughout the term of the CD.
Remember: as a tax-advantaged IRA, the funds must remain untouched until age 59 1/2, or you will incur early withdrawal penalties from the federal government.
Bank of Utah also offers Self-Directed IRAs, which allow you a greater level of involvement in the IRA.
Bank of Utah makes it possible to place your IRA in a Certificate of Deposit (CD), so you get the benefits of both types of accounts. Grow your savings in a tax-favored account with great returns, minus the risk and long-term obligation of other types of retirement accounts.
If you already have an IRA, bring it over! We're happy to take care of the transfer details for you to send the money from that IRA to your new IRA at Bank of Utah.
We can guide you through the laws and regulations that impact IRAs to help you determine whether this investment tool is right for you. Call us today at 800-516-5559.