Individual Retirement Account (IRA)
An IRA from Thomaston Savings Bank is an ideal way to save for retirement, grow your wealth, and gain tax advantages. An IRA is an account that you can add to as you grow giving you an advantage in your taxable income now. And when you do withdraw your money in retirement, you'll be taxed at your lower retirement income tax bracket, which can make a big difference in your savings.
Find Out Which IRA is Right for You
Traditional IRA
- Tax-deductible contributions
- Federal and/or state withholding available upon withdrawal
- Penalties apply to withdrawals before age 59 ½
- As of 2023, required minimum withdrawals begin at age 73
Roth IRA
- Contributions are not tax-deductible
- All earnings and principal are 100% tax-free upon withdrawal
- No mandatory distribution age
- Income limits apply when attempting to open a Roth IRA1
Individual Retirement Account (IRA) Highlights
Tax advantages: You can defer tax payments until you withdraw your money or retire with a Traditional IRA, or pay taxes on the money you contribute today for tax-free withdrawal upon retirement with a Roth IRA.
Flexible options: You can choose from a variety of IRAs, including Traditional, Roth, SEP, and Coverdell, designed to meet your personal retirement goals.
Flexible investing: Work with our local team to help you decide how much you want to contribute each year and how your money is invested.
Easy and accessible: A Thomaston Savings Bank IRA is easy to set up and, depending on the type of IRA, contributions can be withdrawn at any time.
Individual Retirement Account (IRA) Contribution Limits
| IRA Plan Type | Catch up (Age 50+) | IRA Plan Type |
|---|---|---|
| Traditional | $1,000 | $7,000 |
| Roth | $1,000 | $7,000 |
| SEP | – | $68,000 |
| Coverdell | – | $2,000 |
Retirement Income
Estimate your monthly retirement income based on your savings, expected returns, and current age.
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1Consult your tax advisor for current limits for your individual situation.