IRAs help you save for retirement while enjoying tax advantages. There are two types of IRAs:
A Traditional IRA allows you to benefit from possible tax-deductible contributions and earnings that grow tax deferred. This is usually the best choice for someone who expects to be in a lower tax bracket after retirement.
A Roth IRA allows you to invest toward your retirement with tax-free earnings, with potential tax-free withdrawals in retirement. This is usually the best choice for someone who expects to be in the same or a higher tax bracket in retirement.
The table below compares the features of each one based on what may be most important to you.
What's most important to you:
Getting a tax deduction on my contribution (if certain conditions are met)
Tax-free withdrawals on my savings during retirement (if certain conditions are met)
Tax-deferred growth on my savings
Penalty-free access to my annual contributions before retirement
The ability to avoid required minimum distributions (RMDs) after age 70½
The ability to contribute to an IRA in addition to my retirement plan at work
The ability to contribute after age 70½
The ability to rollover my pre-tax 401(k) plan without paying taxes
The ability to get tax-deferred growth on my savings because my income is too high to make a Roth IRA contribution
There are several investment choices for retirement savings, including IRA CDs.
Additional Deposits Allowed Anytime
Early Withdrawal Penalty
No set up or annual maintenance fees
Additional deposits allowed at any time
Penalties apply for withdrawals made before age 59½ if the CD has not reached maturity
Transfer fee applies when money is transferred to another financial institution* (Waived in the case of death and when money is transferred to Citizens Investments.)
On the day of maturity, the CD automatically renews for another term at the rate in effect at that time
The IRS defines eligibility, contribution and distribution rules. Please consult our Certified Financial Planner or your tax advisor to see which IRA is right for you.
An HSA is a special tax-advantaged account that is used with a high-deductible health plan "HDHP," and allows you and your family members to pay for various qualified medical expenses —from co-payments at your doctor's office to pharmacy bills, dental care, vision care, and more.
Whether you're planning ahead to cover unexpected medical expenses or you're strategizing to offset your high annual deductible, an HSA makes good sense.
HSA contributions, by employee or employer are excluded from income
HSA earnings are tax deferred
HSA assets are not taxed if used for qualified medical expenses
Unused HSA assets may be used for retirement; however, they will be subject to a 10 percent penalty until the HSA account beneficiary turns age 65. If not used for medical expenses, they will be subject to income taxes
Upon death, HSA assets become the property of a named death beneficiary, or of the HSA account beneficiary’s estate. A spouse may treat the assets as his or her own HSA, while non-spouse death beneficiaries must treat such assets as ordinary taxable income.
Your Citizens Bank HSA is set up like a checking account, allowing you to write checks or use a debit card to pay for qualified medical expenses.
$100.00 minimum balance to open and avoid fees
$3.00 per statement cycle if minimum balance is not maintained
$25.00 account set up fee
Earn interest on all balances
Unlimited check writing
Free Debit Card available (only one per account)
Free Online Banking (NetTeller)
Free use of Telephone Banking
Mailed paper monthly statement available
Account history CD ROM available for a fee
See a Personal Banker for more information regarding:
Qualified medical expenses
All HSA Contributions made via transfers within Online Banking will be coded as “Current Year” Contributions. If you wish to make a contribution to your HSA for the previous tax year prior to April 15th, please visit your local branch and speak with a Personal Banker.