Individual Retirement Accounts (IRAs)

Creating the future of your dreams requires a plan. An IRA from Monson Savings can get you on the road, helping you save for retirement.

Open an account today and start setting aside funds in one of these potentially tax-advantaged IRA options. Whether retirement is decades away or just around the corner, now is a good time to prepare, so you can make the most of your golden years!

Details
  • Build savings for retirement
  • Potentially tax advantaged earnings
  • No setup fees
  • Annual contribution limits apply
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • $100 minimum to open an IRA Savings
  • $1,000 minimum to open an IRA CD
  • Every dollar deposited at Monson Savings is fully insured by the FDIC and DIF
Traditional vs Roth

There are advantages to both Traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 ½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals begin at age 70 ½

Roth IRA

  • Income limits to be eligible to open Roth IRA***
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal*
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals can begin at age 59 ½
  • Early withdrawals on subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income
IRA CDs
  • Build savings for retirement
  • No monthly service fee
  • No deposits during the term
  • Penalty free distribution after age 59½
  • $1,000 minimum deposit to open
  • Every dollar deposited at Monson Savings is fully insured by the FDIC and DIF

*Subject to some minimal conditions. Consult a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***Consult a tax advisor.