Individual Retirement Accounts (IRAs)
Western Kentucky is a perfect place to retire—especially if you have the finances to enjoy it to the fullest. Get on the path to a secure financial future with an IRA from Hancock Bank & Trust Company.
Both Traditional and Roth IRAs offer distinct tax-saving advantages. We make it easy to get started with no setup fees and only $500 needed to open your IRA with us. It's your future, so it's never too early and never too late to start.
- Summary
- Tax-advantaged retirement savings
- Competitive interest above standard savings rates
- Traditional and Roth IRAs (see comparison tab)
- No setup fees
- $5,000 contribution limit per year
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- IRA Double Security Plus - Free Accidental Death Coverage in amount equal to the insured members IRA account balance, including accrued interest, at the time of accident which causes such persons death. (Maximum $12,500.00)
- FDIC insured
- Traditional vs. Roth IRA
There are a few key differences between traditional and Roth IRAs, including when the bulk of the tax savings are realized. The following comparison can help determine which is right for you.
Traditional IRA
- Anyone under age 70½ can open
- Dividend earnings are tax deferred until withdrawal
- Contributions can be deducted from current income tax returns*
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty**
- Mandatory withdrawals begin at age 70½
Roth IRA
- Income must be less than $120,000 annually to open***
- Dividend earnings are 100% tax free
- Contributions are not tax deductible
- Principal can be withdrawn penalty-free at any time*
- Withdrawals of earnings can begin at age 59½; early withdrawals subject to penalty**
- No mandatory withdrawals
*May be subject to some minimal conditions. Consult with a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
***Or $177,000 for married couples.
