What are IRAs?

An IRA, or Individual Retirement Account, is an investment tool with tax rules and maximum contribution limits set by the IRS (Internal Revenue Service).

Think of IRAs as long-term savings accounts with tax benefits. These advantages have some limitations, so it’s wise to consult with your tax advisor.

You may fund your IRA with rollovers from other IRAs, retirement plans, direct contributions or a combination of those. The FDIC guarantees IRAs up to applicable limits.

What is an ​Individual Retirement Account

What types of IRA are available?

There are two main types of IRA:

  • Roth IRA
  • Traditional IRA

Both have differing tax liabilities and benefits. Your choice will depend on your age, income, financial goals, and government requirements.

What types of retirement accounts are available
 

Compare Traditional and Roth IRAs.

Factors to consider Traditional IRA Roth IRA
Tax Treatment1
  • Generally, contributions to a Traditional IRA are not taxed until distributed.
  • You may be able to deduct some or all of your contributions to a Traditional IRA depending on your personal circumstances.
  • Generally, contributions to a Roth IRA are not taxed if you make a qualified distribution based on IRS rules.
  • You will not be able to deduct your contributions to a Roth IRA.
Eligibility
  • You may be able to make contributions until age 70½ if you have received taxable income during the year.
  • You may be able to contribute at any age if you have received taxable compensation during the year and your modified adjusted gross income is below certain amounts.
Withdrawals
  • You may withdraw contributions and earnings without IRS penalty at 59½.
  • Minimum distributions are required by age 70½.2
  • Qualified withdrawals may be made without IRS penalty.
  • You may withdraw earnings without penalty at age 59½ if your account is at least 5 years old.3

Open your IRA with only $100!

We make it easy for you to begin saving for your retirement. With our 18-Month Special IRA CD, you can open your IRA with only $100. We also offer you the option of a regular CD IRA, which requires a $500 minimum deposit.

See details below:

Account features CD IRA 18-Month Special IRA CD
Term 3 months to 10 years 18 months
Minimum Opening Deposit $500 $100
Renewal Change terms at renewal or renew at the same term automatically Automatically renews into the same term
Additional Deposits No additional deposits until maturity Allows additional deposits of $100 or more during the term

Ready to get serious about your retirement?

To sign-up for a Popular IRA, stop by one of our convenient branch locations.

For additional information, contact our Customer Care Center at 1-800-377-0800.

1You may be able to take advantage of certain tax savings. We do not make any representations or warranties as to a consumer’s ability to save on taxes with these products. Every individual’s tax and financial circumstances may differ. Please consult a Tax or Financial advisor to discuss individual needs and determine the appropriate product.

2Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 59 ½ you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.
Source: https://www.irs.gov/retirement-plans/traditional-and-roth-iras

3If you are under age 59 ½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.
Source: https://www.irs.gov/retirement-plans/traditional-and-roth-iras

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