Individual Retirement Accounts (IRAs)

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.

Traditional IRA

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.

Roth IRA

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 IRA

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.

Account Details

You are eligible to establish a Traditional IRA if you have earned income/reportable compensation regardless of your age.



  • Earnings remain tax deferred until you make withdrawals from your account.
  • Deductibility of your contribution is based on whether you or your spouse is an active participant in an employer's sponsored retirement plan. If you are an active participant, the deductible amount is dependent on your modified adjusted gross income (MAGI). Your tax professional can help you determine your actual deduction.
  • You can withdraw funds from your IRA without a 10% premature distribution IRS penalty after you reach 59½.


Annual contribution limits in any combination of Traditional and Roth IRAs are:

Traditional IRA

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.



  • You cannot take a tax deduction for any contribution that you make to a Roth IRA. However, when you make a withdrawal, you pay no taxes on any of the earnings that your contributions have generated, provided you take the earnings as part of a "qualified distribution".
  • To fulfill the IRS's Roth IRA Qualified Distribution requirements, you must meet a five-year holding period for your Roth IRA. This period begins as of the first day of tax year for which your first Roth contribution is made anywhere. After that, any Roth IRA earnings you withdraw for a "Qualified Distribution" reason listed below are income tax free and IRS penalty tax free.
  • Qualified distribution reasons are:
    • Made on or after the date on which you attain age 59½
    • Made to your beneficiary (or your estate) upon your death
    • Attributable to your being totally and medically certified disabled
    • Qualifying "first-time" home purchase (up to a $10,000 lifetime limit)


Annual contribution rates in any combination of Traditional and Roth IRAs are:

Roth IRA

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.




  • Rollover IRAs allow you to consolidate funds from past employers' plans, such as a 401(k), in one place.
  • Assets in a Rollover IRA maintain tax-deferred status.


Call us at 866-422-6574 if you are interested in a Rollover IRA. We make it easy!

Roth vs. Traditional IRA Calculator

This Individual Retirement Account (IRA) calculator helps you compare possible retirement outcomes from investing in a Roth IRA vs. a Traditional IRA.

Retirement Planning Calculator

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.