Is an IRA right for you?
Granite Bank is happy to provide convenient and flexible solutions for your retirement savings. Whether you are rolling over accounts, making a transfer, or initiating a contribution, we have the expertise to assist you.
You can select our new IRA Savings Account, if you prefer to have easy access to your IRA, or you can select any of our Certificates of Deposit if you would like a fixed rate.
Types of IRAs
You can choose from a ROTH IRA or a Traditional IRA, each with distinct advantages:
The Traditional IRA is an account that allows you to defer taxes on your earnings until they are withdrawn. Also, certain contributions are deductible in the tax year for which they are made and withdrawals can be made before age 59½ for the first-time purchase of a home or for higher education for children. Please consult your tax advisor.
The ROTH IRA is an account that features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since ROTH IRA contributions are non-deductible and taxed in the year they are earned, some people benefit more from these accounts than from a traditional IRA.
IRA Transfers and Rollovers
It’s easy to move your IRA to Granite Bank. Whether a Roth or Traditional IRA, you can move existing IRA money as follows:
Simply stop in and complete a transfer form. This form is then sent to the institution that currently holds your funds. After receipt, the funds are sent directly to us for deposit into your account. The IRS places no limits on transfers and no part of this transaction is reported to the IRS.
To complete a rollover, you take the funds from one institution and deposit into another institution. A rollover may be done once per year and the deposit must be completed within 60 days of distribution from the first institution. A rollover is also used when moving funds from a qualified pension plan to a Traditional IRA.
When you withdraw money from a retirement account, it is called a distribution. Distributions from a Traditional IRA are reported to the IRS as income and as such, may be subject to income tax. There may also be IRS imposed penalties except under special circumstances such as death, first time home purchase, disability, education and reaching age 59½. Distributions from a Roth IRA have more complex tax implications. You should speak with your tax advisor, accountant or attorney before proceeding with this type of transaction.
Required Minimum Distributions (RMD)
RMDs are a series of annual distributions that must begin during an IRA owner’s lifetime or upon his/her death. An IRA owner’s first distribution year is the year he /she reaches age 70 1/2. Each IRA owner is ultimately responsible for taking his/her RMDs. Any penalties and resulting taxes for failure to satisfy an RMD fall on an IRA owner, not an IRA custodian/trustee. Our representatives will be happy to assist in calculating your RMD if requested.
Deposits in Traditional and Roth IRA accounts are insured by the FDIC up to $250,000 per depositor.
Contact us for more information!
Contact us for more information on IRAs.