What a great time to save for your retirement!
The maximum contribution you can make to a traditional IRA or a Roth IRA is an amount equal to your taxable compensation up to $6,000. Those of you age 50 or better can contribute an amount equal to your taxable compensation up to $7,000. This is commonly referred to as the “catch up” provision that allows older workers to contribute a higher amount as they get closer to retirement age.
You can contribute:
- If you have earned income from employment
- Contact your tax advisor for specific tax advantage and contribution guidelines
With a traditional IRA, your contribution is tax-deductible, but your gains will be taxable when you make withdrawals. Roth IRA’s have non-tax deductible contributions, but withdrawals at retirement will be made without taxes. Citizens Bank & Trust offers a host of traditional IRAs as well as Roth IRAs and Education IRAs. Funds are invested in Certificates of Deposit. Regular CD terms and rates are available for IRA’s.