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.
Click on the underlined headings below to learn more about each IRA account type.
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.
*Consult your tax advisor regarding your eligibility for these tax advantages.