Individual Retirement Accounts (IRA’s)
IRA’s offer a great way to help save for your retirement while offering a terrific tax benefit. Texan Bank offers Traditional and Roth IRA’s.
Individual Retirement Accounts
- Low minimum opening deposit of $1,000 on all terms
- CD terms ranging from 1 year to 5 years
- No fees on the account unless a withdrawal is made from the certificate before maturity.
What are the basic differences between a Traditional IRA and a Roth IRA?
Traditional IRA’s
The annual contribution to a Traditional IRA is tax-deductible (if you qualify), but when you begin to withdraw money, you pay income taxes on your withdrawals.
Roth IRA’s
The annual contribution to a Roth IRA is not tax-deductible. Your contributions can be withdrawn any time tax and penalty-free; and after a 5-year holding period, you may be able to make federally tax-free withdrawals of your earnings.