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Compare Your Citizens Bank IRA Options
Citizens Bank's IRAs are available as certificates of deposit or savings accounts, with various terms and options available.

Traditional IRA
This IRA allows you to make contributions to your account with pretax dollars. You can use this IRA to lower your taxable income, and thus lower the amount you have to pay in taxes.
Withdrawals can be made without restrictions upon age 59-1/2 or for qualified educational expenses, qualified medical expenses, disability, first time home purchase (up to $10,000), health insurance premiums while unemployed for 12 weeks or longer, covering the cost of childbirth or adoption expenses (up to $5,000), or for payment to beneficiaries at owner’s death. Required Minimum Distribution withdrawals must be taken annually starting at age 70-1/2 (age 72 for individuals who attain the age of 70-1/2 after Dec. 31. 2019) to avoid penalty.
  • Every individual who has earned income or received alimony may contribute to a Traditional IRA. Income from other sources such as investments or inheritances does not qualify.
  • You may make annual contributions up to the maximum IRA limits set by the IRS.
  • Earnings grow tax-deferred until withdrawn, and contributions may be tax deductible.

Roth IRA
Roth IRA contributions are made with after-tax dollars, which means it does not lower your taxable income. The advantage is that your earnings grow tax-free, and your withdrawals are made tax-free. Plus, you won't have to pay taxes on this money when you retire.
  • You are eligible to contribute to a Roth IRA if your income is less than a limit set by Congress and you earn compensation (or your spouse earns compensations and you file a joint return). If your income is too high to contribute the annual contribution limit, you may be able to make a smaller contribution. Check with a tax professional for current figures.
  • You may make annual contributions up to the maximum IRA limits set by the IRS.
  • Regular contributions can be withdrawn tax-free and penalty-free at any time.
  • After the account has been open five tax years, earnings can be withdrawn tax-free and penalty-free for any of these reasons: age 59½, disability, death or a first-time home purchase.
  • Contributions are non-deductible but all withdrawals, including earnings, are tax-free if the account has been open for five years and the account holder is 59½ or older.

Coverdell IRA (Education IRA)
An Education IRA is a great way for adults to save for a child’s education.
  • Contributions may be made up to the maximum Coverdell IRA limits set by the IRS.
  • Contributions can pay for qualified higher education expenses, including tuition, books, supplies and associated fees – along with both public and private elementary and high school expenses.
  • Contributions are non-deductible, earnings are tax-deferred and distributions are tax-free if used to pay for the account beneficiary's qualified expenses for costs of kindergarten through 12th grade, college or trade school. 

Simplified Employee Pension (SEP) Plan
A SEP is a retirement plan established by employers, including self-employed individuals (sole proprietorships or partnerships) whereby employers may make tax-deductible contributions on behalf of eligible employees. Employers are allowed a tax deduction for plan contributions. Employees do not pay taxes on SEP contributions, but these contributions are taxed when the employees receives a distribution from the IRA. SEP plans require establishing a Traditional IRA to which the employer will deposit SEP contributions. Once deposited, SEP contributions become Traditional IRA assets and are subject to many of the IRA rules, including the following:
  • Distribution rules
  • Investment rules
  • Contribution and deduction rules for Traditional IRA contributions
  • Documentation requirements for establishing an IRA
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