Plan for your retirement with a PB&T IRA. Designed as long-term savings accounts, IRAs are savings accounts intended to benefit you at retirement age. IRAs can be funded with your salary, wages, and tips. Income from properties and pensions are examples of funds that are not eligible as IRA contributions. There are two types of IRAs. A Traditional IRA defers taxing your account contributions until you withdraw money in retirement, while a Roth IRA taxes your contributing funds when they are deposited and allows for tax-free withdrawals in retirement. Both Traditional and Roth IRAs offer tax advantages to help you save for your retirement.
- Tax-sheltered retirement account
- May begin taking distributions once you reach age 59 ½
- Must take minimum distributions after you reach age 70 ½
- May combine benefits of tax-deferred earnings and tax-deductible contributions
- Must be younger than 70 ½ to establish and contribute
- Can deduct contributions depending on your income, filing status, whether you are covered by a retirement plan at work, and whether you receive Social Security benefits
- Early withdrawals are subject to income tax plus a 10% penalty.
- Earnings are tax-free
- Contributions are made with after-tax (or nondeductible) money
- No age limit required to contribute
- When you retire and take distributions, they are completely tax free
- No requirement to take minimum distributions at age 70 ½
- Funds can sit idle forever, which makes it a nice way to leave money to your heirs.
- You can withdraw your contributions at any time tax free, but earnings in your account are subject to income tax plus an additional 10% penalty if you are younger than age 59 ½.
Plan for your future with PB&T
Since 1889, PB&T has proudly provided banking with a personal touch to local communities throughout Colorado. Your trusted partner, PB&T offers branch offices in Cañon City, Castle Rock, Colorado Springs, Denver, Pueblo, Leadville, Longmont, and Salida. Stop by or call us today! We look forward to finding the right savings product for your needs and goals.
How to Open an IRA
Provide the following Information and Documentation:
- An initial deposit of $500.00
- Date of Birth
- A social security number or Tax Identification Number
- A U.S. residential street address
- A State-issued driver’s license, identification card, passport or military ID
This one’s on us! Services that are available to you at no charge, courtesy of PB&T Bank.
- Online Banking
- Online Bill Pay
- Mobile Banking
- Text Banking & Alerts
- Mobile Check Deposit
- 24-Hour Phone Banking