IRAs are a great way to save for retirement because your savings grow tax-deferred until you withdraw funds*. BankRI offers a range of IRA account types to meet your needs.
*Consult your tax advisor regarding your eligibility for these tax advantages.
Contributions to a Traditional IRA are made with pre-tax dollars and are generally tax-deductible. Deductible contributions and earnings are taxed as ordinary income when you withdraw them. You may want to choose a Traditional IRA if you think you will be in a lower tax bracket at retirement.
Contributions to a Roth IRA are made with after-tax dollars and therefore are not tax-deductible. Contributions and earnings are generally tax-free when you withdraw them. You may want to choose a Roth IRA if you think your tax bracket will be the same or higher at retirement.
Rollover IRAs allow you to consolidate funds from past employer plans such as 401(k) and maintain the tax-deferred status of the funds.
Simplified Employee Pension (SEP) IRAs are designed to meet the retirement needs of small business owners and the self-employed. SEP IRAs allow larger tax-deductible contributions than traditional IRAs.
You are eligible to establish a Traditional IRA if you have earned income/reportable compensation regardless of your age.
Features:
Annual contribution limits in any combination of Traditional and Roth IRAs are:
AGE | 2020 | 2021 |
---|---|---|
Under 50 | $6,000 | $6,000 |
50 and over | $7,000 | $7,000 |
You are eligible to contribute to a Roth IRA if you or your spouse has compensation at or below the limits for the tax year. For single filers, the limits are $140,000 or less for 2021 and $139,000 or less for 2020. For joint filers, the limits are $208,000 or less for 2021 and $206,000 or less for 2020.
Features:
Annual contribution rates in any combination of Traditional and Roth IRAs are:
AGE | 2020 | 2021 |
---|---|---|
Under 50 | $6,000 | $6,000 |
50 and over | $7,000 | $7,000 |
If you have one or more retirement plans that you’ve left behind at previous jobs, a BankRI representative will be happy to help you consolidate your accounts in one place for easier management.
Features:
Call us at 866-422-6574 if you are interested in a Rollover IRA. We make it easy!
This Individual Retirement Account (IRA) calculator helps you compare possible retirement outcomes from investing in a Roth IRA vs. a Traditional IRA.
A retirement plan requires careful consideration of many factors – such as how much you save, how your future earnings might change, and how much you’ll spend in retirement. This calculator allows you to explore different outcomes by adjusting these variables, and seeing their effects on your retirement plan.
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