The thought of a relaxing retirement is high on anyone’s priority list, but like any other time in your life, your retirement may be marked by financial ups and downs. Fortunately, a well-thought-out strategy, like an IRA from Baylake Bank, can help you stay on a path toward a comfortable retirement.
Choose from our traditional or Roth options and benefit from interest above standard savings and the associated tax advantages* each plan provides. Start planning for tomorrow, starting today.
There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.
Traditional IRA - Distributions from traditional IRAs and most employer-sponsored retirement plans are taxed as ordinary income and may be subject to an additional 10 percent federal income tax penalty if taken prior to reaching age 59½ or for one of the 9 reasons listed above.
Roth IRA - Unlike a traditional IRA or an employer sponsored retirement plan, a Roth IRA is not subject to annual required minimum distributions after age 70½. As long as Roth IRA withdrawals take place after age 59½ or for one of the 9 reasons listed above, and the account has been open for at least five years, distributions will be free of federal tax and penalties.
Traditional IRA - When you reach your age 70½ year, you must begin to take minimum required withdrawals or severe penalties will be imposed.
Roth IRA - There are no required distributions from a Roth IRA.
Talk with a Personal Banker near you for more information about IRA withdrawals.