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IRA Share Savings

First Heritage offers both Traditional and Roth Individual Retirement Accounts.  An Individual Retirement Arrangement (IRA), commonly called an Individual Retirement Account, is a personal retirement savings plan available to anyone who receives taxable compensation during the year. For IRA contribution purposes, compensation includes wages, salaries, fees, tips, bonuses, commissions, taxable alimony and separate maintenance payments.

There is no minimum or required IRA contribution to start your IRA.  All it takes is a few minutes to start planning for your future!

The side-by-side comparison gives a general overview of the main differences between Traditional and Roth IRAs.  Use it to help you decide which IRA is right for you.  You will also want to talk with your tax advisor.

A Traditional IRA make sense if you:

  • Are eligible for a Traditional IRA deduction,
  • Are not eligible to contribute to a Roth IRA,
  • Anticipate a higher tax rate while saving,
  • Anticipate a lower tax rate during retirement,
  • Plan to withdraw at least the required minimum distribution (RMD) amounts during retirement, or
  • Are not concerned about tax implications to beneficiaries

A Roth IRA may be more fitting if you:

  • Are not eligible for a Traditional IRA deduction,
  • Anticipate a lower tax rate while saving,
  • Anticipate a higher tax rate during retirement,
  • Want to avoid RMDs (Required Minimum Distributions),
  • Are concerned about tax implications to beneficiaries, or
  • Are not eligible to contribute to a Traditional IRA because of the age limit.

If you are eligible for both, why choose?  you can contribute to both a Traditional and Roth IRA as long as your total contributions for the year do not exceed the annual limit.

IRAs are insured up to $250,000 by the National Credit Union Administration, for more information please contact First Heritage.

Start early to maximize your return!

For eligibility requirements, contribution limits, etc., visit www.irs.gov/Retirement-Plans.