IRA Savings Accounts

The main difference is when you pay taxes. With a Traditional IRA, contributions may be tax-deductible now, but you pay taxes when you withdraw in retirement. With a Roth IRA, you contribute after-tax dollars now, but qualified withdrawals in retirement are tax-free. A Roth IRA also has no required minimum distributions, and you can contribute at any age as long as you have earned income.

For 2024, you can contribute up to $7,000 per year to your Traditional or Roth IRA. If you're age 50 or older, you can make an additional $1,000 catch-up contribution for a total of $8,000. Contribution limits are set by the IRS and may change annually. Income limits apply to Roth IRA contributions.

You can withdraw your contributions from a Roth IRA at any time without tax or penalty. For earnings to be tax-free, you must have held the account for at least 5 years AND meet one of these conditions: you're age 59½ or older, buying a first home (up to $10,000), permanently disabled, or the distribution is to a beneficiary after your death.

Yes! We accept direct transfers and rollovers from 401(k) plans and other qualified retirement plans. Westmark will report the rollover contribution on IRS Form 5498. Our Financial Service Representatives can guide you through the process to ensure a smooth, tax-efficient transfer. Contact us or visit a branch to get started.

A CESA allows you to save up to $2,000 per beneficiary, per year for education expenses. Contributions are not tax-deductible, but earnings grow tax-free when used for qualified K-12 or higher education expenses. Income limits apply: $190,000 MAGI for joint filers, $95,000 for single filers. Contributions can be made until the beneficiary reaches age 18, and funds must be used or rolled over to a family member by age 30 (or earnings become taxable plus a 10% penalty).

No! At Westmark, you pay no transaction or set-up fees for your IRA. There is no minimum balance requirement for IRA Savings Accounts. IRA Term Certificates require a minimum deposit of $500 for 12-month and 24-month terms.

You can take penalty-free distributions from a Traditional IRA starting at age 59½. You can choose monthly, quarterly, or annual distribution schedules. Early withdrawals (before 59½) are subject to income taxes plus a 10% IRS penalty, with certain exceptions for first-time home purchase, disability, medical expenses, or education costs. Required Minimum Distributions (RMDs) must begin at age 73.

Yes! Your IRA is federally insured separately from your other account balances by the National Credit Union Administration (NCUA) up to $250,000. This means your retirement savings have their own protection in addition to your regular savings and checking accounts.