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Business Banking

Retirement Services


Simplified Employee Pension (SEP)

SEPs are an excellent and efficient way for business owners to set aside retirement funds for employees and themselves.

Advantages of a SEP:

  • Contributions to a SEP are tax deductible (up to 25% the employees' income).
  • Contributions are immediately 100% vested.
  • The business pays no taxes on the investment earnings.
  • Annual contributions are not mandatory.
  • No administrative costs.

Traditional IRAs

The Traditional Individual Retirement Account (IRA) allows you to put away funds for retirement tax-free until they are withdrawn. You may begin to withdraw from your Traditional IRA at the age of 59 ½ without penalty. If you don't take any distributions before, you must begin taking distributions at age 70 ½.

Other advantages include:

  • No income restrictions for availability.
  • No minimum contribution requirement in any year.
  • Certain contributions may be tax-deductible.
  • Independence; you can open and fund your IRA without any employer participation.
  • Catch-up contributions allowed for those over the age of 50.

Roth IRAs

The Roth Individual Retirement Account (IRA) gives you the ability to invest your after-tax dollars today, let the investment grow tax-deferred, and take qualifying withdrawals tax-free.

Other advantages include:

  • Contributions are allowed even if you are covered by a company pension plan.
  • No age restrictions on making contributions.
  • Take qualified withdrawals at any time penalty-free and tax-free as long as the Roth IRA has been established for at least five years.

 

In selecting retirement plan options, consult your tax advisor about the program that will make sense for you. Then visit your local branch office, or call and ask to speak to one of our Customer Service Representatives at 800-222-9801.