IRA Details

• Competitive Interest Rates: Our IRAs offer interest rates that surpass those of standard savings accounts, maximizing your earnings.
• IRA Options: Choose from Traditional IRA, Roth IRA, and Coverdell ESA to find the perfect fit for your financial goals.
• Low Opening Deposit Requirements:
  • $50 minimum deposit for a variable-rate Savings account
  • $100 minimum deposit for a variable-rate/term account
  • $1,000 minimum deposit for a fixed-rate/term account
• Contribution Limits: Contribute up to $7,000 per year (2024 tax-year), with an additional $1,000 "catch-up" contribution allowed for those aged 50 and over.
• Tax Deductible Contributions: Contributions to your IRA may be tax deductible, reducing your taxable income.¹

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Traditional IRA vs. Roth IRA

Traditional IRA vs. Roth IRA

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 the time of retirement.

Traditional IRA:

• No income limits to open
• No minimum contribution requirement
• Contributions are tax-deductible on state and federal income tax ²
• Earnings grow tax-deferred until withdrawal, typically when you’re in a lower tax bracket
• Withdrawals can begin at age 59½
• Early withdrawals are subject to penalties ³
• Mandatory withdrawals start at age 73

Roth IRA:

• Income limits apply to be eligible ¹
• Contributions are not tax-deductible
• Earnings are 100% tax-free at withdrawal ²
• Principal contributions can be withdrawn without penalties ²
• Withdrawals on interest can begin at age 59½
• Early withdrawals on interest are subject to penalties ³
• No mandatory distribution age
• No age limit on making contributions, as long as you have earned income

Coverdell Education Savings Account (CESA)

Coverdell Education Savings Account (CESA)

Prepare for your child’s education by starting early with a Coverdell Education Savings Account (CESA) at Fidelity Bank:

• Tax-Free Growth: Interest grows tax-free, providing financial confidence for future educational needs.
• Penalty-Free Withdrawals: Funds used for qualified education expenses are withdrawn tax-free and penalty-free. ⁴
• Contribution Limits: Up to $2,000 annually per child.
• Flexibility: The CESA can be transferred without penalty to another family member.⁵
• Low Opening Deposits:
  • $50 minimum deposit for funds going into an IRA Savings account
  • $100 minimum deposit for funds going into an IRA variable 1½ year CD
  • $1,000 minimum deposit for funds going into a CD
• The money must be withdrawn by the time he or she turns 30⁶
• The CESA may be transferred without penalty to another member of the family

Simplified Employee Pension (SEP)

Simplified Employee Pension (SEP)

A Simplified Employee Pension (SEP) plan provides business owners with a simplified method to contribute toward their employees' retirement as well as their own retirement savings.

• Retirement plan for small businesses funded by the employer
• Contributions are made to the IRA of each eligible employee
• Must cover qualifying employees
• Contribution limit is the smaller of 25% of compensation or up to $69,000 (2024 tax-year)
• Company or owner gets a tax deduction
• The deadline for contributions is the tax due date plus extensions
• Required Minimum Distribution (RMD) rules apply

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Get Started with Fidelity Bank’s Retirement and Education Savings Solutions

Ready to secure your financial future? Open an Individual Retirement Account (IRA) today and start taking advantage of the competitive interest rates and tax benefits offered by Fidelity Bank, your trusted community bank. Visit us at any nearby branch or request more information to explore our featured IRA offers and begin your journey to saving for a secure financial future.