Individual Retirement Account
Individual Retirement Accounts (IRAs) are one of the smartest and most tax-efficient ways for individuals to save for their retirement. At Sunflower Bank, you can open Certificate of Deposit (CD) or Money Market accounts as Traditional IRA, Roth IRA or Rollover IRAs. Tax advantages are different for the type of IRA you choose.
Traditional IRAs offer the key advantage of tax-deferred growth. Anyone with an earned income and their spouses, if married and filing jointly, can contribute to a Traditional IRA. There is no age limit, and you may be able to claim a deduction on your individual federal income tax return for the amount you contributed. This IRA type may be a good choice if you think your current tax rate is higher than the tax rate you'll face in retirement.
Roth IRA contributions are not tax-deductible, but earnings can grow tax-free, and qualified withdrawals are tax- and penalty-free. Roth IRA withdrawal and penalty rules vary depending on your age and how long you've had the account and other factors. Before making a Roth IRA withdrawal, it is recommended that you consult with your tax advisor to ensure understanding of any early withdrawal penalties or income taxes that may be triggered by the withdrawal.
You can transfer assets from a previous, employer-sponsored retirement account plan, like a 401(k), to a traditional IRA. Keeping the assets separate from other IRAs may allow you to roll the funds into another employer plan at a later date.
Talk to your tax advisor to find out which IRA is right for you, and then we'll help you get started preparing for the retirement you've always wanted.
General information presented is for informational purposes only. Please consult your tax advisor for details, tax and legal advice.