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- Money
Management > IRAs
Individual Retirement Accounts (IRAs)
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With
the IRA contribution limit increased to $5,000 for 2008,
it's more important than ever to partner with someone you
trust.. We offer many
investment choices including Traditional and Roth
(IRAs) and Education
Savings Accounts (ESAs). Our IRA specialists
can help you build your solid financial future.
What is an
IRA?
Individual
Retirement Accounts (IRAs) are great savings vehicles for
retirement. An IRA or ESA is a long-term savings plan that
gives you the advantage of compound interest and
tax-deferred or tax-free savings. |
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Which IRA is
right for you?
Investing for the
future helps make your dreams a reality. With so
many IRAs available, how do you know which will be the most
effective in reaching your goals?
The following
information will help you get started. A Bank Mutual IRA
specialist can then answer any questions and put an
IRA to work for you.
How much can you
contribute?
Although there is
no minimum contribution to your Traditional or Roth IRA, your
annual contributions are limited to $5,000 ($10,000 per married
couple), or your total taxable compensation - whichever is
less.* Keep in mind that if you have more than one IRA, the
combined total cannot exceed the contribution limit. If you are
age 50 or better, a special catch-up provision allows
you to contribute even more.
*Contribution
limits valid through 2008
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Traditional IRAs
Start saving now
with a Traditional IRA and your contributions and earnings will
grow tax-deferred. If you qualify, your contributions may
be tax-deductible. Withdrawals are required by age 70 1/2, and
there are penalties for early withdrawal (before age 59 1/2).
There are some exceptions, such as withdrawals used for education
expenses or for purchasing your first home. A Bank Mutual IRA
specialist can explain the details. Since your IRA earnings are not taxed until they are withdrawn,
Traditional IRAs are a good option if you expect to be in a
lower tax bracket during retirement.
Roth IRAs
Roth IRA
contributions are made with after-tax dollars. By paying taxes
on the money you invest now, there are no income taxes on
qualified withdrawals from your Roth IRA. Your earnings will
grow tax-free, and withdrawals are not required at any age, as
long as you have earned income. This makes it a useful
estate-planning tool, allowing you to use your funds for your
retirement or pass them on to your heirs.
Educational
Savings Account
Education is
expensive, so it's smart to start saving as soon as possible. An
Education Savings Account (ESA) lets you save
up to $2,000 per year for any child under the age of 18. (This
is in addition to other IRA contributions.)
Once the child turns 18, the money can be withdrawn tax - and
penalty - free for qualified higher education expenses. A Bank
Mutual IRA specialist can explain the additional features of an
ESA.
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FDIC Insured
Safety
Your Bank Mutual
IRA is insured by the Federal Deposit Insurance Corporation
(FDIC), giving you the peace of mind that your money is
protected up to $250,000. You will also have the confidence that
all of your accounts are backed by more than 115 years of Bank
Mutual strength and experience.
Automatic
Deposits
To make it even
easier to save, you can make automatic contributions to your
IRA. Ask your Bank Mutual IRA specialist to set up periodic
deposits from your paycheck or your Bank Mutual checking or
savings account. You'll never forget to save, and you'll be on
the way to reaching your financial goals.
Retirement Fund
Transfer Account
If you're changing
jobs, retiring or your current retirement plan is ending,
there's no need to worry about what will happen to your existing
retirement or profit sharing funds. Our IRA specialists can help
you set up a Retirement Fund Transfer Account, an IRA rollover
account that receives the balance from your current plan.
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