IRA stands for Individual Retirement Account and there are several types of IRAs. At First County Bank, we offer Individual IRAs and Self-Employed SEP-IRAs.
Traditional IRA
A Traditional IRA is an investment account that allows you to save money for retirement and receive a tax advantage. IRAs are beneficial because a 401(k), pension, or other account may not provide enough retirement income on their own. An IRA account gives you additional flexibility because you can save more money, save on taxes, and access investment options that you may not receive through an account with your employer. IRAs have contributions limits that depend on your income. There are also withdrawal rules where you may face a 10% penalty if you withdraw the money before age 59 ½.
Self-Employed SEP-IRA
SEP IRAs are ideal for self-employed people or small-business owners with few or no employees. Similar to traditional IRAs, the contributions are tax-deductible, but once you retire, the distributions are taxed as income. There are contributions limits and SEP IRAs may require proportional contributions for employees.
For more information, contact us or visit a First County Bank location to open an IRA and begin saving for retirement today! For information on taxes, consult a tax advisor.
