No matter what your favorite fruit is, you can't get any without planting a seed. Same goes for retirement. Whether you want to travel, take up boating, or just plain relax—you need to plant a seed ahead of time.
Come open a tax-saving individual retirement account (IRA) with Capital. We make it easy to get started, because the sooner you do, the sooner you can enjoy the fruits of your labor.
- Tax-advantaged retirement savings
- Competitive dividends greater than regular savings
- Easy rollovers from other plans
- No setup or maintenance fees
- $5,500 contribution limit per year
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Funds can be used to purchase CDs within IRA
- $1,000 minimum deposit to open a certificate
- $500 minimum balance to earn dividends in a retirement savings account
- Federally insured by NCUA
- Traditional vs. Roth
There are advantages to both traditional and Roth IRAs. One of the biggest differences is when you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.
- No income limits to open
- Contributions are tax deductible on state and federal income tax*
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty**
- Mandatory withdrawals at age 70½
- Adjusted gross income must be less than $127,000 to contribute ($188,000 for joint filers)***
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal*
- Principal contributions can be withdrawn without penalty*
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest subject to penalty**
- No mandatory distribution age
*Subject to some minimal conditions. Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
***As of 2013; IRS may change figure annually.