Traditional IRAs and Roth IRAs

Individual retirement accounts (IRAs) are investment accounts specifically set up to save for retirement by offering significant tax advantages.

Traditional IRA

With a traditional IRA, your contributions are tax-deductible, meaning you won’t pay taxes on your money until retirement. If you expect your tax rate during retirement to be lower than it is today, or if you want to reduce taxable income now, this option may be a better fit for you.

Account Summary

  • Contribute up to the maximum contribution limit of earned income per year or more if you're 50 and over, until you are 70½ years old1
  • Contributions may be tax-deductible if you meet certain conditions1
  • Funds can be withdrawn without penalty once you reach the age of 59 1/2, or before that subject to a 10 percent penalty unless exceptions apply2
  • Distributions must begin by April 1st of the year following the year you reach age 70½
  • Anyone under 70½ who has earned income is eligible
  • Traditional IRAs can generally be converted to Roth IRAs, although tax consequences may apply1
Apply at a Branch

Roth IRA

With a Roth IRA, your contributions are taxed up front, meaning you won’t pay taxes on your money when making qualified distributions during retirement. If you expect to have a higher tax rate at retirement, or if your current tax rate is low, this option may be a better fit for you.

Account Summary

  • Contribute up to the maximum contribution limit of earned income per year or more if you're 50 and over, until you are 70½ years old1
  • Contributions are not tax-deductible1
  • Funds can be withdrawn without penalty once you reach the age of 59½, or before that subject to a 10 percent penalty unless exceptions apply2
  • No requirement to take a minimum distribution at age 70½
  • Anyone with earned income is eligible
  • Roth IRAs cannot be converted to Traditional IRAs1
  • Terms range from 12 months to 48 months
  • Interest is compounded daily
  • The rate is fixed for the term of the CD
Apply at a Branch

1 Certain qualifications apply. Consult your tax advisor for more information.

2 Exceptions allowing for non-penalty early withdrawals include disability, qualifying medical expenses (under certain conditions), qualifying education expenses, unemployment (under certain conditions), qualifying first home purchase, and death.

Your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank, for each account ownership category. To learn more about the FDIC, visit them online at : www.fdic.gov.

Legal

  • Modify Privacy Options

© 2024 Landmands Bank. All Rights Reserved. 201 South Division Street, Audubon, Iowa 50025
Landmands Bank is an Equal Opportunity/Affirmative Action/Veterans/Disability Employer.