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INDIVIDUAL RETIREMENT ACCOUNTS AT THE PEOPLES BANK
It is never too early to begin saving for retirement. Compounding of interest over time is the key to achieving your goals in the future. Our IRA accounts are ROCK SOLID, with a stated rate of interest so that you know exactly the rate of return when you sign the certificate. Investment decisions based past performance of a mutual fund or other investment can have disappointing results. We offer both Traditional and Roth IRA accounts.
Traditional IRA accounts allow you to take an annual deduction from earned income, during your earning years. This decreases your taxable income during those years. The amount that is deductible may vary according to your age, so you should always consult your tax advisor. Once you have reached retirement age, withdrawals from your IRA are taxable income. However, the lower income levels that usually accompany retirement do not result in as high of a tax bracket as we have experienced during our prime earning years.
Roth IRA accounts differ from traditional IRA’s in that you cannot deduct contributions from your income as a deductions. Upon retirement your withdrawals are considered tax-free income, because taxes were paid before the funds were placed into the Roth IRA.