Individual Retirement Accounts (IRAs)
Ah, retirement. Just thinking of the meeting-free days of tomorrow can bring tears to your eyes. Of course, whether those are tears of joy or just plain tears depends on how financially prepared you are.
At Altoona First, we put you first. That's why it's easy to open an IRA with only a $100 initial deposit. There are no setup or monthly maintenance fees. We offer both traditional and Roth IRAs, presenting great tax advantages for everyone.
- Summary
- Tax-advantaged retirement savings
- Competitive interest above standard savings rates
- No setup or maintenance fees
- $5,000 contribution limit per year
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Funds can be used to purchase CDs, stocks, bonds, etc. within IRA
- $100 minimum deposit to open
- FDIC insured
- Traditional IRA
- No income limit to open
- Contributions are tax deductible on state and federal income tax*
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty**
- Mandatory withdrawals at age 70½
*Consult with a tax advisor
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
- Roth IRA
- Income must be less than $120,000 annually to open ($177,000 for married couples)
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal
- Principal contributions can be withdrawn without penalty*
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest subject to penalty**
- No mandatory distribution age
*Subject to some minimal conditions.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
