Retirement Planning

Additional retirement savings options are available through Citizens Investment Services.

Tax-Advantaged Savings Accounts


Individual Retirement Accounts (IRAs)

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: Traditional IRA Roth IRA
Getting a tax deduction on my contribution (if certain conditions are met) X  
Tax-free withdrawals on my savings during retirement (if certain conditions are met)   X
Tax-deferred growth on my savings X X
Penalty-free access to my annual contributions before retirement   X
The ability to avoid required minimum distributions (RMDs) after age 70½   X
The ability to contribute to an IRA in addition to my retirement plan at work X X
The ability to contribute after age 70½   X
The ability to rollover my pre-tax 401(k) plan without paying taxes X  
The ability to get tax-deferred growth on my savings because my income is too high to make a Roth IRA contribution X  



There are several investment choices for retirement savings, including IRA CDs.

Account Type Opening Balance Rate Type Additional Deposits Allowed Anytime Early Withdrawal Penalty
6 Month $500 Fixed $100 Minimum 3 Month
1 Year $500 Fixed $100 Minimum 3 Month
2 Years $500 Fixed $100 Minimum 12 Month
3 Years $500 Fixed $100 Minimum 12 Month
4 Years $500 Fixed $100 Minimum 12 Month
  • 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.

Additional Retirement Savings options are available through Citizens Investment Services.

Taxpayers can find out more about IRAs at


Health Savings Account (HSA)

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.

Tax benefits

  • 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 E-Statements
  • 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
  • Eligibility
  • Contributions/Distributions
  • Government reporting

Online Contributions

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.

Taxpayers can find out more about HSAs here:

Please consult your tax advisor to see if an HSA is right for you.