When is it time to save for retirement?
Saving money for retirement can be easier if you get into the habit sooner rather than later. CBTx offers IRAs to help planners take advantage of tax benefits for long-term retirement saving.
What is an IRA?
An IRA is a retirement savings and investment account with tax benefits. Available benefits are determined by the type of IRA plan you choose.
Which IRA is right for me?
A Traditional IRA allows you to defer taxes on the earnings from your contributions until they are withdrawn. Also, certain contributions are tax deductible in the tax year for which you make them.
A Roth IRA allows only nondeductible contributions and features tax-free withdrawals for certain distribution reasons following a five-year holding period. If you expect to be in a higher tax bracket when you retire, you may benefit more a Roth IRA account because contributions are nondeductible and taxed in the year they are earned.
Am I eligible for a Traditional or a Roth IRA?
You are eligible to establish a Traditional IRA if you are younger than age 70 ½ for the entire tax year and you or your spouse earn compensation for employment.
You are eligible to establish a Roth IRA if you or your spouse has compensation and your modified adjusted gross income does not exceed certain prescribed limits.
You may establish a traditional or Roth IRA even if you already participate in or are receiving contributions from a retirement plan sponsored by your employer.
For more information regarding a CBTx IRA, drop by or give us a call and a CBTx personal banker will provide the current rates and help you find a savings plan that meets your needs.
