Individual Retirement Account (IRA)
Individual Retirement Plans
Having a sufficient savings nest egg at retirement is more important than ever. We specialize in setting up individual retirement plans and helping our customers with IRA contributions, retirement plan rollovers, and IRA transfers. We will work with you to build the IRA portfolio you’ll need to meet your retirement planning goals. Our locally-managed IRA department is just a phone call away if you need assistance or have questions regarding retirement plans.
No-annual-fee Traditional IRAs, Roth, Rollover, Beneficiary, and SEP IRAs are available at any of our branch locations and are FDIC-insured up to $250,000. Options include competitive IRA CDs and easy-access IRA money market accounts.
Traditional IRAs
Contributions made into a traditional IRA may be tax deductible and may save you money at tax filing. Since the SECURE Act eliminated the age limit for contributions, anyone with earned, reportable income can contribute to a Traditional IRA and enjoy tax-deferred interest and potential tax deductibility of contributions. Contribution dollar limits are $7,500 for individuals under age 50 and $8,600 for those age 50 and older.
Rollovers from an employer Retirement Plan:
Individuals who are retiring, have switched jobs, or may have funds left in an employer retirement plan may want to move their retirement plan assets into an IRA with a “direct rollover.” This option allows the funds to remain tax sheltered and growing tax deferred without taxes or penalties. We’re here to help make this transfer easy and confusion free. Stop by any of our branch offices and we can help streamline the process to move the funds. Paperwork from your employer may be necessary to take funds from the employer plan so check with your Plan Administrator first.
Distributions
Distributions from an IRA can be made at any time, but if made before age 59½ may be subject to taxes and a 10% early withdrawal penalty unless certain exceptions apply. Consult a tax advisor. Mandatory distributions from a Traditional IRA must begin by age 73 and certain IRA beneficiaries may be subject to mandatory distributions. We are glad to assist you with any of these situations to help make this process as easy as possible.
Roth IRAs
Contributions into a Roth are non-deductible. However, all earnings grow tax-free! Enjoy the benefit of fully tax-free withdrawal after a five-year holding period for certain distribution reasons. Anyone with earned reportable income under certain limits can contribute to a Roth IRA and there are no mandatory distribution requirements at age 73. Contribution limits are $7,500 for individual under 50 and $8,600 for individuals 50 and over.
Roth IRA Conversions
Traditional IRA holders can take advantage of tax-free withdrawals at retirement by “converting” their IRA to a Roth. Recent tax laws have eliminated the $100,000 income restriction for Roth conversions. All dollars converted are reported as taxable income for the year of the conversion.
Simplified Employee Pension (SEP) IRAs
Designed to give the self-employed and small business owner an affordable retirement plan for their employees. Contributions are made by the employer into a SEP IRA for their employees and we will establish the SEP IRAs for the employees to receive these contributions. SEPs are an attractive choice for many small business owners.
SEP contributions can be made up until the business owner’s tax filing deadline (including extensions). Contribution limits increase each year, so always consult your benefits provider before making SEP contributions.
My Retirement Outlook
No matter where you are in your stage of life, saving for retirement should be a primary goal. Do you know if you are saving enough money to retire when and how you’d like? Do you know how much you need to be saving each paycheck to achieve your goals? Our Retirement calculators help illustrate what it might take to reach your retirement objectives.
Stock Yards Bank and Trust does not provide tax advice. Speak to a tax advisor regarding your specific circumstances. Account opening subject to approval. Terms and conditions are subject to change. Speak to a banker for details.