Individual Retirement Accounts
Take advantage of potential tax benefits by investing in an Individual Retirement Account* (IRA) today! An IRA is a smart investment tool. Unlike other savings and investment programs, contributions may be tax deductible and can grow tax free or tax deferred. Best of all, your Wheatland Bank IRA deposits are fully insured up to $250,000 by the FDIC – and separately from any other non-retirement deposits you may have with us.
The Traditional IRA is a tax-deferred savings plan that allows you to save for retirement. You are eligible to contribute to a Traditional IRA if you have earned income (compensation or alimony) and have not reached the age of 72 prior to the tax year-end. Contributions are made up to a specified limit with the contribution tax deductible up to the phase-out limitation. Money invested and earned in a traditional IRA is subject to income taxes at the time of withdrawal. Withdrawals can be made without penalty once the age of 59½ is reached and withdrawals are required once the age of 72 is reached.
A Roth IRA is similar to the Traditional IRA, with some added benefits for age and income levels. Unlike Traditional IRAs, with a Roth IRA you can contribute beyond the age of 72 as long as you have earned income. Contributions to Roth IRAs are not tax deductible, however unlike Traditional IRAs, contributions and earnings can be withdrawn tax-free*. Additionally, with Roth IRAs you are not required to begin taking required minimum distributions at age 72.
Catch Up Contributions
If you reach the age of 50 by the tax year-end, you can make additional catch-up contributions of $1,000 each year to both Traditional and Roth IRAs**.
For additional IRA information, please review the Frequently Asked Questions (FAQ) addressed on the IRS website.