Individual Retirement Account (IRA)
As you plan for retirement, many people consider additional savings vehicles outside of their 401(k), such as an individual retirement account (IRA). In fact, an IRA is one of the most viable ways to help assure a secure retirement. Bankers Trust offers both Traditional IRAs and Roth IRAs, with features including potential tax benefits*, accessibility and flexibility.
Our variety of IRAs also offer:
- Various investment terms
- No annual fee
- Time deposit and savings accounts available
- FDIC insured up to $250,000 separate from other deposit accounts
Learn more about each account below, and call a branch to open your IRA today.
* Please consult a tax advisor for tax benefits.
IRA and Retirement Plan Changes in the CARES Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act recently passed by Congress and signed into law by President Trump contains a few provisions regarding rule changes for retirement plans:
- Required minimum distributions (RMDs) are suspended for 2020. All RMDs are suspended, including those for inherited IRAs as well as traditional IRAs of those over age 72.
You are advised to carefully consider whether to take advantage of this suspension. If you have already taken your 2020 RMD, you may be required to include it in your gross income and pay taxes on it. Always consult your tax professional to learn benefits and requirements for your situation.
- Due to the tax return filing deadline for 2019 income tax returns being extended to July 15, 2020, the deadline for making a 2019 contribution to an IRA is also extended to July 15.
- Additionally, the 10% penalty for taking early distributions from qualified retirement plans, including IRAs and 401(k)s has been waived. This waiver applies to distributions taken between January 1, 2020 and December 31, 2020. Up to $100,000 of distributions avoids the penalty.
- Tax-deferred growth
- Must be under age 72
- Contributions may be tax deductible
- No income limit to make contributions
- Withdrawals of pre-tax contributions and any earnings are taxable when distributed
- Withdrawals before age 59½ may be subject to an additional 10% tax unless an exception applies
- Must take a Required Minimum Distribution (RMD) starting at age 72
- Tax-free growth
- Tax-free qualified withdrawals
- No age requirement if you have employment compensation
- Income limits apply to make contributions
- Contributions are withdrawn tax-free for those who are 59 1/2 years old or older and the IRA account has been opened five years or more.
- Earnings are federally tax-free (some restrictions apply)
- No Required Minimum Distribution
Auto-Save CD IRA
An Auto-Save CD IRA allows you to automatically contribute to your IRA monthly, with automatic transfers from your Bankers Trust checking or savings account.** Choose a Traditional IRA, Roth IRA, or Simplified Employee Pension (SEP) IRA, and a monthly contribution amount that fits your budget, up to the allowable maximum. Features include:
- Contributions are recorded monthly on your checking or savings statement
- Contributions are credited toward the current tax year – never miss the IRS contribution deadline
- Change your contribution amount once during a 12-month period or terminate contributions if your needs change
** Only automatic contributions will be accepted into the Auto-Save IRA. Lump-sum transfers and rollovers can be deposited into a separate Certificate of Deposit. Must have an existing Bankers Trust checking or savings account. Minimum opening deposit and minimum transfer amount $50.00.
IRA Savings Account
- No monthly maintenance fee with $1,000 minimum daily balance***
- Interest paid on collected balances
- Quarterly statements
- FDIC insured
*** A monthly maintenance fee of $8.99 (plus sales tax, if applicable) will be imposed each statement cycle if the account balance falls below $1,000 any day of the month.
- Must have earned income from employment
- May contribute a minimum of $200 and up to $6,000 per year, per IRA holder
- May contribute an extra $1,000 “catch-up” contribution per year at age 50 and older
- $50 minimum deposit required for Auto-Save IRAs
Frequently Asked IRA Questions
What is an IRA?
An IRA is a savings account set up by a financial institution that helps you save for retirement with tax-free growth or on a tax-deferred basis. There are two types: Traditional and Roth IRAs. Thanks to the tax benefits in both options, you get to keep more of your hard-earned money for retirement.
What is a Traditional IRA?
A Traditional IRA is a type of individual retirement savings account that lets the money you save grow tax-deferred. When you withdraw the money for retirement, you have to pay taxes on the savings you take out. This means that your savings can compound each year without any interference from taxes
What is a Roth IRA?
A Roth IRA is a retirement savings account that lets your money grow tax-free. The money you put into a Roth IRA account is after-tax dollars, meaning you have already paid taxes on that money. This means when you withdraw your money for retirement, you pay no taxes.*