Individual Retirement Accounts (IRAs)

Individual Retirement Accounts offer competitive interest rates and potential tax advantages to help you plan for your retirement expenses. First Command Bank offers FDIC-insured CDs and Money Market Savings Accounts as both Traditional and Roth IRAs.

Compare Traditional and Roth IRAs

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Compare Traditional and Roth IRAs

  Traditional IRAs Roth IRAs
Tax Advantages Contributions may be tax deductible
Taxes deferred until you start making withdrawals		 Account can be funded with after-tax dollars
Withdrawals are tax free
Eligibility Must be under age 70½
Must have received taxable compensation		 No age restrictions
Modified Adjusted Gross Income must fall within IRS limits
Contributions Up to $5,000 of earned income
Up to $6,000 of earned income for age 50+
Up to your taxable compensation if it is less than the standard contribution amount		 Up to $5,000 of earned income
Up to $6,000 of earned income for age 50+
Up to your taxable compensation if it is less than the standard contribution amount
Withdrawls Normal withdrawals can begin at age 59½ (early withdrawals may be subject to 10% IRS penalty)
Required Minimum Distribution (RMD) begins at age 70½		 Contributions can be withdrawn tax and penalty free at any time (earned income subject to tax and penalties)
Earned income can be withdrawn tax-free beginning at age 59½, or when an exception applies, (account must be opened 5+ years)
No mandatory distribution age

Please visit irs.gov for more detailed information about eligibility and tax guidelines.

IRA CDs

IRA CDs offer the security and predictability of a Certificate of Deposit plus the tax benefits of an Individual Retirement Account. A safe, secure place for your cash reserves at a fixed rate for a fixed period of time, IRA CDs are backed by federal deposit insurance up to specified limits.

Features

  • Minimum opening deposit $1,000
  • Available maturities1: 30 days, 90 days, 182 days, one year, 18 months, two years, three years, four years, and five years
  • Competitive, tiered rates allow you to earn more with higher balances
  • Interest paid for collected balance of $1,000 or more2
  • Automatic renewal at maturity with 10-day grace period
  • Start making IRS penalty-free withdrawals (upon CD maturity) at age 59½.3
  • FDIC insured7 up to specified limits

1CDs are subject to early withdrawal penalties
2Interest paid monthly on balances of $10,000 or more, quarterly on balances below $10,000
3IRA withdrawals made prior to age 59½ may be subject to a 10% IRS tax penalty, see http://www.irs.gov/publications/p590/ to learn more. Withdrawals prior to CD maturity subject to early withdrawal bank penalty equal to one month or three months interest, depending on term of CD. You may pay income tax on withdrawals, including contributions that were tax deductible. The information in this document does not constitute tax advice. Please consult with your tax advisor for specific information about your tax situation.

IRA Money Market Savings Account

The IRA Money Market Savings Account combines the tax advantages of an IRA, the safety and security of a steady interest rate and FDIC insurance, and the flexibility and liquidity of a savings account. And with our highly competitive, tiered interest rates, you earn more as your balance grows.

Features

Visit the IRA Money Market Account FAQs to learn more.

4Amount deposited annually limited to eligible IRA contribution amounts. IRA withdrawals made prior to age 59½ may be subject to a 10% IRS tax penalty, http://www.irs.gov/publications/p590/ to learn more.
5Federal regulations allow a maximum of six withdrawal/transfer transactions per statement cycle. Excess withdrawal fee is $10.00 for each withdrawal exceeding six.
6Interest credited and compounded monthly. Increasing interest tiers with minimum balances of $1 / $2,500 / $5,000 / $10,000 / $25,000 / $50,000
7For more information about FDIC coverage limits and requirements, visit www.myFDICinsurance.gov

For more information

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If you have questions about whether an IRA CD or IRA Money Market Savings Account is right for you, or if you are interested in an investment IRA, please contact your First Command Financial Advisor.