Individual Retirement Account
Individual Retirement Accounts for a Secure Retirement
At Community Bank & Trust of Florida, we want to help make it easier for you to effectively save for retirement and manage your money while in retirement. We can set up a traditional IRA or a Roth IRA for you, and our competitive rates on CDs will help your retirement savings grow faster to get you the purchasing power you need for a comfortable lifestyle.
Types of Individual Retirement Accounts
We offer both traditional and Roth IRAs so you have options available to fit your individual retirement savings needs and tax-planning strategy.
The tax breaks for a traditional IRA are of the “tax deferred” kind. Contributions are tax deductible and earnings tax-deferred, subject to certain limitations established by the IRS. When you withdraw the money at retirement, after age 59 1/2, it’s taxed at your ordinary income tax rate.
The tax breaks for a Roth IRA are of the “tax exempt” kind. Unlike the traditional IRA, the Roth IRA contributions are never tax deductible. However, when you withdraw the money for retirement, after age 59 1/2 and if open for at least five years, none of the money will be taxed, including earnings.
Additionally, if you have an existing account, we can also help you rollover your existing IRA or any qualified plan – (401(k) or 403(b) — into your personal individual retirement account. We can also provide assistance with SEPs (Simplified Employee Pension Plans).
Let us help you build a solid retirement foundation. Visit any of our branch locations in Ocala, Belleview, Gainesville, Summerfield and The Villages, or call us at 888-388-1007.
Consult your tax advisor about these Individual Retirement Account options.
You might also be able to save on your present taxes with an Individual Retirement Account, by deducting your qualified contributions from your taxable income. Many Americans can deduct all or part of their IRA contributions from current income taxes. The deductible amount depends on your income, marital status and whether you’re an active participant in an employer sponsored plan as defined by the Internal Revenue Service.
With an Individual Retirement Account, you may also be able defer taxes until you retire when you will probably be in a lower tax bracket. The chart below shows you how much you may be able save each year. You may want to consult your tax advisor to review the tax deductible status of an IRA. Regardless of the amount you’ll be able to save now on taxes, an IRA is a smart way for you to save for a secure retirement.
IRA Tax Savings Potential Chart:
|IRA Deductible Contribution Amount||10 % Tax Bracket Savings||15 % Tax Bracket Savings||25 % Tax Bracket Savings||28 % Tax Bracket Savings||33 % Tax Bracket Savings||35% Tax Bracket Savings|
If You’re Changing Employers, An IRA Rollover Makes Sense. If you are retiring or changing jobs and anticipate withdrawing money from your employer’s retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan. You can ask your employer to arrange for a “direct rollover” of your money into a new IRA account with us, or you can do it yourself with an IRA-to-IRA rollover.
You must complete the rollover within 60 days from the date you receive the assets from your old IRA in order to qualify and not pay the mandatory 20% withholding and possibly other penalties as well. For more information about IRA Rollovers or opening a new IRA just give us a call at one of our convenient locations.