IRA Accounts – Individual Retirement Accounts

Let CCB Help You Save For Retirement

At CCB, we don’t want you to have to worry about putting off your retirement because you don’t have enough money saved up. Start saving today and earn competitive interest with an Individual Retirement Account (IRA) from CCB.

Benefits of a Traditional or Roth IRA From CCB

Has potential to earn better interest than traditional savings
No setup fees
No monthly or annual maintenance fees
Annual contribution limits apply
Additional $1,000 “catch-up” contribution allowed for ages 50+
No minimum deposit to open

Traditional IRA

Investing with pre-tax dollars

Provides potential tax relief today
No income limits to open
No minimum contribution requirement
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 without penalty
Early withdrawals may be subject to an IRS penalty**
Mandatory withdrawals begin at age 73
Age limits apply to contributions – must have qualified income

Roth IRA

Investing with after-tax dollars

Potential for the most tax benefit at time of retirement
Income limits to be eligible to open Roth IRA***
Contributions are NOT tax deductible
Earnings are 100% tax free at time of withdrawal if the distribution is qualified*
Principal contributions can be withdrawn without penalty*
No mandatory distribution age
No age limit on making contributions as long as you have earned income
Withdrawals may be subject to taxes and penalty, depending on your age, the five year period and other conditions
No age limit on making contributions as long as you have qualified income

*Subject to some minimal conditions. Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc. Consult a tax advisor.
***Consult a tax advisor.

IRA CD

An IRA CD is a retirement savings account that combines the tax advantages of an IRA with the guaranteed, fixed rate of a CD.

How it Works

Fixed interest rate for a set term
Funds grow steadily over time
Designed for long-term retirement savings

Key Benefits

Guaranteed returns with fixed rates
FDIC-Insured up to applicable limits
Low risk and not market-dependent

Key Benefits

Contribution limits may apply
Early withdrawal penalties may apply
Traditional IRAs may require minimum distributions at a certain age

*Minimum starting balance of $1,000 required.
**An IRA Certificate of Deposit (CD) is a time deposit account within an Individual Retirement Account that earns a fixed interest rate and Annual Percentage Yield (APY) for the full term, which will be disclosed at account opening. Early withdrawals may be subject to penalties that could reduce earnings and may also result in IRS taxes or penalties; customers should consult a tax advisor. At maturity, the CD will automatically renew for the same term at the prevailing rate unless otherwise directed during the grace period. Contributions and distributions are subject to IRS rules and limitations. This account is governed by the applicable IRA Custodial Agreement and disclosures provided at account opening, which include details on revocation rights, fees, and account terms. Funds are insured by the Federal Deposit Insurance Corporation (FDIC) up to applicable limits for retirement accounts. For IRA CDs, early withdrawals may incur penalties.

Coverdell ESA

A great way to save for a child’s future educational expenses

Distributions are tax-free when applied to qualified education costs
Can be opened by anyone — not just family members of a child
Can be opened for any child younger than age 18
Special needs children may be eligible after they reach 18
Competitive interest rates
No annual maintenance fee
Earnings grow tax-deferred
No minimum deposit to open

Coverdell ESA Account Requirements

Contributions limited to $2,000 annually
Contributions are not tax-deductible
Contributions must stop when beneficiary reaches age 18
Beneficiary must withdraw remaining assets within 30 days after reaching age 30, or roll assets over tax-free to a new Education ESA for the benefit of another eligible family member
Distributions not used for qualified educational expenses are taxable, and subject to a 10% penalty
Taxpayers filing jointly with AGI (Adjusted Gross Income) below $190,000 are eligible to contribute (eligibility phases out as AGI increases from $190,000 to $220,000)
Single filers with AGI below $95,000 are eligible to contribute (eligibility phases out as AGI increases from $95,000 to $110,000)