Individual Retirement Accounts
Town & Country Bank offers three different IRA plans for customers to choose from, so investing can be tailored to fit your individual needs. A IRA can be opened with a minimum deposit as low as $100. With all IRAs, there is a substantial penalty for early withdrawal.
Traditional
- This is a custodial account for an individual with earned income
- Grows tax-free, but disbursements are subject to tax
- Deposits can be up to $5,000/year and $6,000/year for those age 50 and over – interest is compounded quarterly
- Disbursements can begin at age 59 1/2
- IRA certificates can be automatically renewed
- IRAs can be transferred from other institutions at no charge
- Disbursements can be made before retirement age for qualified reasons
Roth IRA
- Funds invested are after tax dollars
- Grows tax-free and disbursements can be tax-free
- Contributions are not tax deductible
- IRA certificates can be automatically renewed
- Deposits can be up to $5,000/year and $6,000/year for those age 50 and over – interest is compounded quarterly
- Disbursements can be made before retirement age for qualified reasons
Coverdell Education Savings Account
- The CESA is designed to save for a child's education
- Not only can this IRA grow tax-free, but disbursements are also tax-free when used to pay for qualified education expenses
- Deposits can be up to $2,000/child/year and interest is compounded quarterly
- IRA certificates can be automatically renewed
