Individual Retirement Accounts (IRAs)

Seattle Bank offers Traditional and Roth IRAs, each with important tax benefits and both offering essential retirement planning resources.

Traditional IRA

• Interest earnings are tax-deferred until withdrawn
• Current income grows tax-free until withdrawn
• Increases untaxed savings since withdrawals will be subject to lower tax bracket
• Contributions may be tax-deductible on current returns
• $500 minimum to open
• Withdrawals may begin as early as age 59½ and are required after age 70½
• Early withdrawals (prior to age 59½) are subject to 10% penalty by the IRS
• Investment choice of any term Certificate of Deposit that Seattle Bank offers; terms range from 3 months to 3 years
• Interest is compounded daily, and is credited to the account quarterly
• No annual maintenance fee or plan fee
• No set up fee or closing fee
• FDIC insured

Roth IRA

With a Roth IRA, you cannot deduct contributions on your existing tax returns, but you avoid all taxes on your withdrawals once you retire.

• All earnings may be tax-free upon withdrawal*
• Your income is taxed now, when you are working, instead of when you are retired
• Some early withdrawals may be penalty-free for specific situations
• $500 minimum to open
• Contributions cannot be deducted on current tax returns
• Investment choice of any Certificate of Deposit that Seattle Bank offers; terms range from 3 months to 3 years
• Interest is compounded daily, and credited to the account quarterly
• No annual maintenance fee or plan fee
• No set up fee or closing fee
• FDIC insured

*Customer must hold the IRA for five years and be at least 59½ years of age for tax-free withdrawals.