As the new year quickly approaches, many individuals begin to review their benefits. Just like any other benefit package, there are many options to choose from when it comes to your retirement account. At Frontier Bank, we want to make sure that you have the best IRA type to reach your financial goals. Below is a quick refresher guide to the IRA accounts available to you through Frontier Bank and the advantages of starting with us today!
What is an IRA?
An individual retirement account (IRA) is an account set up at a financial institution that allows an individual to save for retirement in a tax-advantaged way. There are several different types of IRAs, each with its own separate advantages. If you have earned income and your income is below a certain threshold, you may qualify to put money into an IRA. Those funds will have the opportunity to grow with tax-deferred advantages.
Different types of IRAs are Available at Frontier Bank
We can accept and service all types of IRAs, Traditional, SIMPLE (for companies with fewer than 100 employees), SEP (for business owners or self-employed workers), Roth IRA, Rollover IRA, Self-Directed IRAs, Spouse IRAs, and CD IRAs. We also offer HSA accounts.
- Traditional IRA – Contributions are normally pre-taxed (you may receive a benefit on your tax return), earnings grow tax-deferred, then you pay tax on your distributions.
- Roth IRA – Contributions are after-tax (you do not receive a benefit on your current tax return), earnings grow tax-deferred, and there is no tax on distributions if the earnings have been in the account for five years.
- SIMPLE IRA – For companies with fewer than 100 employees. Employer and employee may contribute and may receive a tax benefit.
- SEP IRA – For business owners or self-employed workers. Typically, best for 1 – 3 employees, 100% employer funded.
- Rollover IRA – This type of account is used if you have contributed to a 401k plan and are leaving your current employer. You may roll your 401(k) savings into a Rollover IRA and may continue with your current tax-advantage structure.
- CD IRA – for conservative investors, we do offer CD IRAs. The savings in this account are invested in a bank CD and are FDIC insured.
Advantages of starting an IRA with Frontier Bank
Our motivation is to help others succeed! When you walk into our branches, you can speak with a member of the Wealth Management & Trust department, and we will assist you in meeting your goals. We work with a variety of investments, including stocks, bonds, mutual funds, Exchange-Traded Funds (ETFs), real estate, gold, and LLCs, to name a few. You are not limited by a minimum balance or an account opening fee requirement. We have a commission-free structure for your investments and do not impose penalties when you need access to your money.
Why Frontier Bank Has a Competitive Advantage over Other Banks
Our knowledge and experience set us apart; Certified Financial Planners® are available to help you plan and organize your financial future. Providing a one-stop shop (centralized location for all things finance), helps you save time and makes your experience stress-free!
No matter what your situation and the financial goals that you have set for your future, Frontier Bank is here to help. If you’d like to review our IRA accounts or would like to set up a consultation with one of our financial advisors, contact us at (712) 472-2538 (Iowa) or (605) 332-3832 (South Dakota).
Trust Administrative Assistant
Downtown Sioux Falls