Individual Retirement Accounts
Start Planning for Future Financial Goals with an IRA from Raccoon Valley Bank
An individual retirement account, or IRA, is a great tool to begin saving for your retirement or other future goals. Not only are you putting money away for the future, but you are also giving it time to grow from compound interest. Raccoon Valley Bank can help you start your retirement fund through numerous IRA options to give you peace of mind when you think about the future. IRA options at Raccoon Valley Bank include traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs and Coverdell Education Savings Accounts.
These popular retirement accounts allow for contributions to be tax-deductible. Contributions can also be withdrawn penalty-free at any time for medical or education costs, or if you need them to help purchase a home. Distributions for traditional IRAs must begin at age 70½ .
Another popular IRA option, Roth IRAs’ main benefit is tax-free earnings growth. While your contributions are not tax deductible, you can withdraw your contributions at any time without fear of penalty. You also do not have to begin receiving distributions at age 70½ if you do not need them. This makes Roth IRAs great tools for handing on wealth to beneficiaries, which is possible in most cases.
This retirement account is designed for small businesses and self-employed business owners, including sole proprietors, partnerships, S-corporations and corporations. SEP IRAs allows for discretionary, tax deductible contributions for employers and their employees, with earnings and contributions being tax-deferred.
Specifically designed for companies with less than 100 employees, SIMPLE IRAs are essentially simplified versions of 401(k) or SEP IRA plans. Participants in a SIMPLE IRA make salary deferred contributions, with employers able to make matching contributions if they choose. Both contributions and earnings in a SIMPLE IRA are tax-free until withdrawal.
This is a great way to save for your child until they reach age 18. Coverdell accounts are tax-free in that you do not have to pay taxes on earnings or withdrawals for qualified education expenses. Money saved in a Coverdell account can be used for elementary and secondary education costs, whether your child attends a public, private or religious school. Coverdell accounts can also be used for college, technical or postgraduate education.
Raccoon Valley Bank - Your Investment and IRA Partners
If you feel intimidated or lost when thinking about saving money for the future, call or come by Raccoon Valley Bank to speak with the our Investment professionals. They will help you set up a savings plan with the IRA that is right for you.