We can help you plan for your retirement with a variety of safe and secure investment options.
We offer two different types of IRAs: Traditional IRAs and Roth IRAs. Consult with your tax advisor to determine which type of IRA is right for you, or you can review the information available on the IRS web site.
You may wish to maintain all or some of your retirement funds in the safety of an NSB Certificate of Deposit (CD). With the protection of FDIC insurance, the assurance of continued growth, a CD can be a solid choice for your IRA. You can use this account for those IRA funds you cannot afford to risk, while knowing that interest will continue to accumulate. There are never any setup or annual maintenance fees on an NSB CD.
Why choose a traditional IRA?
Here are some of the main points about traditional IRAs. As in any tax situation, consult with your tax advisor, review IRS Pub 590 or consult the IRS web site.
- Tax Advantages: Unlike most investments, the interest earned on a Traditional IRA is not taxable in the year it is received. Your IRA earnings are not subject to taxation until they are removed from the account.
- Power of Compounding: This tax deferment allows your savings to grow faster and is perhaps the greatest long-term benefit of the Traditional IRA. Tax deferral on gains leaves more money in the account to compound, allowing an investment to grow larger than it would if taxes were paid along the way.
- Up-front Tax Breaks: Some investors are permitted to deduct IRA contributions from their federal income tax (depending on their eligibility).
- Special Purpose Withdrawals: Withdrawals may be made from a Traditional IRA without tax penalty by individuals under the age of 59 ½ for certain qualified purposes.
Why choose a Roth IRA?
Here are some of the main points about Roth IRAs. As in any tax situation, consult with your tax advisor, review IRS Pub 590 or consult the IRS web site.
- Tax Advantages: Although contributions are not tax deductible, the earnings do accumulate tax-free. Deposits are taxed up front, but the future payoff could be greater.
- Extra Withdrawal Options: After five years with a Roth, qualified homebuyers can withdraw up to $10,000 per lifetime before age 59 ½, tax-free for a first-time home purchase.
- Liberal Eligibility Rules: You cannot be barred from opening one just because you are covered by a retirement plan at work or contribute to a self-employment plan such as a Keogh account. And if a child earned $3,000, a parent could put $3,000 into a Roth IRA for a child.
- Wholly Tax-free Withdrawals: Roth IRAs can also be an estate-planning tool - with no mandatory withdrawal age, funds can compound for a heir.