Control your financial flexibility in retirement. It’s never too late or early to start saving for retirement, and Embassy National Bank can help. Our retirement specialists will conduct a risk analysis and help you choose the best financial solution for your lifestyle. Continue reading to learn more about some of our most popular retirement savings accounts.
IRA Certificates of Deposit
Individual Retirement Accounts (IRA) CDs are certificates of deposit owned as either a Roth IRA or a Traditional IRA. They work like any other CD to guarantee the growth of your funds in the IRA. Regardless of the term of your IRA CD, your money will grow tax-deferred and be insured by the FDIC.
Traditional IRA CD
With a Traditional IRA, your contributions may be tax-deductible the year you make them. This type of IRA allows your money to grow tax-free until you start taking distributions. When you begin taking distributions, you may be required to pay taxes on your earnings and contributions. Anyone who is under the age of 70 ½ may be eligible to invest in a Traditional IRA CD.
Roth IRA CD
With a Roth IRA CD, your distributions are typically tax-free, but your contributions are not tax-deductible. Anyone who earns income may be eligible to invest in a Roth IRA CD. This retirement option doesn’t have age restrictions because all contributions are based on after-tax money. Whether you participate in a 401(k) plan will not be a determining factor in your contribution amounts.
The retirement solutions at Embassy National Bank are ideal for investors at or near retirement. These retirement options allow you to take a more conservative approach to build your nest egg. Traditional CDs and IRA CDs are low-risk investments that pay interest as long as your funds stay in the CD. Both of these products should be used as a long-term investment strategy due to penalties if you withdraw before the CD matures.
For more information, contact one of our personal bankers.