An Individual Retirement Account (IRA) is a simple strategy to save for your future. IRAs provide tax advantages that can help you now and in the future. By relying on the power of long-term compounding, IRAs can grow your retirement savings.

Here is a brief overview of Marine Bank's IRAs. For help making an informed decision regarding your IRA options, please contact us.

Traditional IRA

The traditional IRA allows you to defer taxes on the earnings on your contributions until they are withdrawn. Also, certain contributions are tax deductible in the tax year for which you make them. If you have an income below the threshold amounts, the traditional IRA may be the most beneficial for retirement savings. You may be able to deduct up to $5,000 in IRA contributions each year, and tax on interest is deferred until you retire. Generally your income tax bracket is lower at retirement, so at age 60 you can withdraw your IRA funds with a minimal tax liability.

Roth IRA

The Roth IRA allows only nondeductible contributions and features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a traditional IRA. With this product, you are able to make non-deductible annual contributions of up to $5,000 depending on your income. Earnings on qualified distributions are tax-free.

Coverdell Education Savings Account

Specifically designed for higher education expenses, the Coverdell Education Savings Account is a non-deductible account that features tax-free and penalty-free withdrawals. Annual contributions of $2,000 may be made to your Coverdell Education Savings Account.