Retirement Products
Life changes such as retirement or sending a child to college may be years away, but now is the time to invest in your future. We offer a full-range of IRAs that will provide you the peace of mind that comes with financial security. We'll help you pick out the plan that best fits your needs.
Roth IRA
The Roth IRA is a non-deductible account that, after a five-year holding period, features tax-free withdrawals prior to retirement age for certain distribution reasons:
- you reach age 59 1/2
- permanent disability
- a first-time home purchase
- in the event of your death
When you're ready to take a withdrawal, you pay NO federal income taxes on any of the earnings that your money has generated.
Since Roth IRA contributions are non-deductible and taxed the year they are earned, people who expect to be in a higher tax bracket when they retire may benefit more from these accounts than from a traditional IRA. Also, unlike the traditional IRA which requires minimum withdrawals at age 70 1/2, there are no required distributions from a Roth IRA.
Traditional IRA
The traditional IRA (Individual Retirement Account) is a tax-sheltered retirement savings plan -- an account which allows you to defer taxes on your earnings until they are withdrawn. Also, certain eligible contributions are tax deductible in the tax year for which they are made. You must begin to take minimum required withdrawals when you reach age 70 1/2.
Norwood Cooperative Bank offers two alternatives for Retirement Account funds:
- an IRA Certificate of Deposit, which works the same as our regular certificates
- an IRA Money Market Account or Savings Account, which enables you to deposit your IRA funds over time
