IRA

Save for your retirement with an Individual Retirement Account (IRA)

Traditional IRAs
Ideal for wage earning employees, contributions may be tax-deductible and interest earned is tax-deferred until retirement (or when funds are withdrawn).

  • The maximum annual contribution limit for 2023 is $6,500.
  • The maximum annual contribution limit for 2024 is $7,000.
  • Customers 50 years or more can make additional catch-up contributions of $1,000 annually.
  • Required minimum distributions begin at age 73; however, customers may start to take distributions at age 59-1/2 without penalty.

See how much you could potentially save on your taxes based on your tax bracket:

Tax Bracket:12% 24% 32% 35% 37%
IRA Deductible
Contribution
Amount:
Annual Tax
Savings
Potential
Annual Tax
Savings
Potential
Annual Tax
Savings
Potential
Annual Tax
Savings
Potential
Annual Tax
Savings
Potential
$1,000$120$240$320$350$370
$2,500$300$600$800$875$925
$5,000$600$1,200$1,600$1,750$1,850
$6,500$780$1,560$2,080$2,275$2,405

Roth IRAs
Roth IRAs are a great way to supplement your retirement savings–especially for families planning to buy their first home or individuals who don’t qualify for a traditional IRA. Unlike a traditional IRA, contributions are not tax-deductible and are made with after-tax funds, so you can withdraw your contributions at any time without penalty.

  • The maximum annual contribution limit for 2023 is $6,500.
  • The maximum annual contribution limit for 2024 is $7,000.
  • Customers 50 years or more can make additional catch-up contributions of $1,000 annually.
  • Earnings distributions can be made tax-free at age 59-1/2 if the funds have been in the IRA for five years or more. There are no mandatory minimum distributions. Tax-free distributions due to death or disability or for the purpose of buying your first home are also allowed at any time.

TSB customers may select either a Passbook Savings Account or Certificate of Deposit for their IRAs. IRA deposits are insured by the FDIC up to $250,000 per qualifying account.

Changing Employers or Retiring?
Avoid withdrawal penalties by transferring your assets to a TSB IRA or another qualified plan. Ask your employer to arrange for a “direct rollover” of your retirement savings into a new IRA account with us, or you can do it yourself with an IRA-to-IRA rollover. Rollovers must be completed within 60 days from the date you receive the assets from your old retirement savings account or IRA to avoid the mandatory 20% withholding and other possible penalties.

Please consult your tax advisor regarding your specific situation and the deductibility of your contributions.