Individual Retirement Account

Conneaut Savings Bank offers both Traditional IRA’s and Roth IRA’s.

• A Traditional IRA is an Individual Retirement Account to which you can contribute pre-tax or after-tax dollars, giving you immediate tax benefits if your contributions are tax-deductible.  With a Traditional IRA, your money can grow tax-deferred, but you’ll pay ordinary income tax on your withdrawals, and must start taking distributions after age 72. (70 1/2 for those who turned 70 1/2 in 2019 or 73 for those who turned 72 after December 31, 2022.) Unlike with a Roth IRA, there are no income limitations to open a traditional IRA.  It may be a good option for those who expect to be in the same or lower tax bracket in the future.

• A Roth IRA is an Individual Retirement Account to which you contribute after-tax dollars.  While there are no current-year tax benefits, your contributions and earnings can grow tax-free, and you can withdraw them tax-and penalty-free after age 59 1/2 and once the account has been open for five years.  Other advantages of having a Roth IRA include no contribution age restrictions, no required minimum distributions and no income taxes for inherited Roth IRAs.  Roth IRAs can be a good savings option for those who expect to be in a higher tax bracket in the future, making tax-free withdrawals even more advantageous. Roth IRAs also have some limitations due to income, speak with our deposit accounts department to discuss  these limitations.

Is an IRA Right For You? Take our One-Minute IRA Test and find out. Then call one of our customer service representatives today.