Individual Retirement Account
Keep daydreaming - but start saving, too
Relax with friends. Spoil the grandkids. Explore new places. Dive deep into a new hobby. Your retirement years hold unlimited opportunity for enjoyment. Of course, you'll need to set aside some money to make it all happen, and that's where we come in. Carter Bank's Traditional and Roth IRAs come with steady earnings at competitive rates, a range of tax advantages, and exciting prospects for your future.
Traditional IRA¹
- Get a potential tax deduction for each year you make a contribution
- Annual interest and dividend earnings are tax-deferred until withdrawn at or after age 59 ½
- Begin making penalty-free withdrawals at age 59 ½
- Though there are exceptions, most people must begin taking required minimum distributions the year they turn 73 years old
Roth IRA¹
- Begin making tax-free withdrawals at or after age 59 ½ if the account has been open for at least 5 years
- Contributions (not earnings) can be withdrawn tax-free at any time²
- No minimum distribution required at any age
- Traditional IRA may be converted to a Roth IRA regardless of modified adjusted gross income
Coverdell Education Savings Accounts¹
You want what's best for your children - that includes educational opportunities. With tuition costs constantly rising, it's best to start saving as early as possible. Coverdell Education Savings Accounts allow you to set aside funds for higher education - and for private elementary and secondary schools - and enjoy tax advantages.
- Originally called Education IRAs because they share many of the tax advantages of regular IRAs
- Contribute up to $2,000 per year for each child under age 18
- Funds can be used for tuition, room and board, academic fees and equipment such as laptop computers
- All annual interest earnings are tax-free - and all withdrawals are tax-free
- Any family member can contribute to the account - including grandparents, aunts and uncles, etc.
FAQs
For contact information, including phone numbers, email addresses, and online inquiries, please visit our "Contact Us" page. You can also call us at (833.275.2228), or visit us at one of our locations. To find a location click here.
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1 Early withdrawal penalties may be imposed for early withdrawals. The interest rate and annual percentage yield may change. At our discretion, we may change the interest rate daily. Fees may reduce earnings.
² There is a single, five-year holding period when determining whether earnings can be withdrawn federal, and in many cases state, income tax-free as part of a qualified distribution from a Roth IRA. This period begins January 1 of the year of the first contribution to any Roth IRA account. Unlike the Traditional IRA, contributions are not tax deductible.
³ APY = Annual Percentage Yield. Fees may reduce earnings
Carter Bank is a full-service financial institution with locations throughout Virginia and North Carolina.