Converting your IRA may have significant tax consequences. Before you take this step, be sure to consult with a tax professional.
If you are retiring or changing jobs, ask your employer to arrange for a "direct rollover" of your money into a new IRA account with us, and you won’t pay the mandatory 20% withholding tax.
You can also do an IRA-to-IRA rollover. Complete the rollover within 60 days from the date you receive the assets from your old IRA to qualify. Just go to your financial institution and close your IRA, then bring the check to us. The IRS limits the number of these rollovers to one in a 12-month period.
Contributions into a traditional IRA can be tax deductible and can lower your taxable income. Your earnings also grow tax deferred1. However, contributions are not tax-deductible with a Roth IRA. For more information, visit our Personal IRAs Comparison page.
Traditional IRAs or Roth IRAs are considered Bank IRAs when you put your funds into a savings or CD account. These IRAs are offered through American Savings Bank branches and are FDIC-insured.
Traditional IRAs or Roth IRAs are considered Brokerage IRAs when you put your funds into investments such as mutual funds, stocks and bonds through a broker-dealer and are tailored to your preferred investment strategy.
Make an appointment with a banker to learn more.
Yes there are annual contribution limits for a Traditional and Roth IRA.
Traditional and Roth IRAs have early withdrawal penalties that depend on the specific account terms. Also, withdrawals made before 5 years and before the age of 59 1/2 may be subject to an additional IRS penalty.
For a traditional IRA, you must begin to take distributions by April 1st of the year after you become 72 years old. A Roth IRA has no distribution requirements while you're alive, but beneficiaries will be subject to distribution rules after you pass.
