Individual Retirement Accounts (IRAs)
There are two things that almost every Montanan agrees on: we'd prefer to pay less in taxes and we'd like a comfortable retirement. Establishing an IRA with Mountain West Bank will help you with both. Traditional and Roth IRAs offer unique tax advantages while securing a healthy financial future.
- Summary
- No setup or annual fees
- Tax-advantaged retirement savings
- Compound interest
- $5,000 contribution limit per year
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Funds can be used to purchase CDS, stocks, bonds, etc. within IRA
- $1,000 minimum deposit to open
- FDIC insured
Compare the benefits of traditional and Roth IRAs with the tabs above.
- Traditional IRA
- Anyone under age 70½ may open
- 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 59½
- Early withdrawals subject to penalty**
- Mandatory withdrawals at age 70½
*Consult with a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
- Roth IRA
- Income must be less than $120,000 annually to open ($177,000 for married couples)
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal
- Principal contributions can be withdrawn without penalty*
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest subject to penalty**
- No mandatory distribution age
*Subject to some minimal conditions.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
