Retirement Accounts
Saving for the immediate future is great, but what about those long-term goals? When you're looking for an account that will help you save for retirement, look to the IRA options available from Sanborn Savings Bank.
We have options that help you stay flexible on your savings journey, and our team is here to guide you every step of the way. Contact us today to learn more about your options and open your account.
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At Sanborn Savings Bank, we have two main types of retirement accounts for you to choose from: Traditional IRAs and Roth IRAs. Each account helps you save for retirement more effectively than a traditional savings account. Not sure which account is best for you and your retirement goals? Check out the comparison table below, then contact our team if you need further assistance or to open your account.
Feature | Traditional IRA | Roth IRA |
|---|---|---|
Best for you if... | You want a tax break now and expect lower income later. | You prefer tax-free income in retirement and can pay taxes now. |
Tax Treatment (Withdrawals) | Withdrawals in retirement are taxed as ordinary income | Qualified withdrawals are tax-free |
Tax Treatment (Contributions) | Contributions may be tax-deductible (depends on income and participation in employer plan) | Contributions are made with after-tax dollars (not deductible) |
Eligibility | Anyone with earned income can contribute (limits on deductibility) | Income limits apply for eligibility to contribute |
Required Minimum Distributions (RMDs) | Required starting at age 73 | No RMDs during the account holder’s lifetime |
Early Withdrawal Penalties | 10% penalty before age 59½ (exceptions apply) | Contributions can be withdrawn anytime tax- and penalty-free; earnings subject to 10% penalty and taxes if withdrawn early (exceptions apply) |
*Consult a Tax Advisor.