News

Open an IRA and start saving for your retirement

01/27/2011
IRAs are a good retirement saving tool and can provide tax advantages as well.  
 
With a 1st Source IRA you’ll enjoy competitive interest rates and a secure environment for building a comfortable retirement.
 
You also have a few types of IRAs to choose from:
 
Traditional IRA
  • Contributions may be tax-deductible in the year they’re made.
  • Save now, pay later:  your money grows tax-free until you begin taking distributions, at which time you’ll pay taxes on both your contributions and your earnings.
  • Anyone under the age of 70½ who has an earned income can invest in a Traditional IRA-CD.
  • Consult your tax advisor for more information.

 Roth IRA

  • Contributions are not tax-deductible, but distributions are generally tax-free.
  • Anyone who has an earned income can invest in a Roth IRA – there are no age restrictions, since contributions are funded with after-tax dollars.
  • Participation in a 401(k) plan isn’t a factor in determining contribution amounts. Consult your tax advisor for more information.

 Coverdell Education Savings Account (ESA)

  • Contributions are not tax-deductible.
  • Withdrawals are tax-free when used for a child’s qualified higher education expenses.
  • Consult your tax advisor for more information.