Individual Retirement Accounts (IRAs)
Plan for your financial future. In addition to a company retirement plan or Social Security benefits, Middlesex can help grow your savings with an Individual Retirement Account (IRA) to help you retire comfortably.
How it works:
- Choose your product: With Middlesex, you have the option of two types of IRA accounts: money fund accounts or certificates of deposit (CDs). Both are FDIC insured and have no monthly fee.
- Choose your IRA type: Select a Traditional or Roth IRA. Each type has potential tax advantages to help you generate greater returns. Simplified Employee Pension (SEP) IRAs are available to business owners and their employees.
- Fund your account: Put an initial contribution into your account. Add funds to a money fund any time up to the annual contribution limit to help your retirement plan grow.
Individual Retirement Accounts offer different kinds of tax advantages, so it’s important to understand how each works. Whichever option you choose, your Middlesex Savings Bank IRA is fully insured and earns a competitive interest rate.
- Roth IRA: The money you deposit has already been taxed. Over the years, your earnings can grow tax-free and your withdrawals will be tax-free when they are “qualified”.
- Traditional IRA: Your contributions may be tax-deductible. Your earnings grow tax-deferred and you pay taxes when you make withdrawals.
- SEP IRA Plan: A Simplified Employee Pension (SEP) IRA is a type of traditional IRA that lets self-employed people and small business owners save for retirement. The tax benefits and responsibilities are similar to those of Traditional IRAs.
Funding your IRA: Contributions & Rollovers
- Contributions: Deposit checks directly into your IRA when you visit a Middlesex branch, or transfer funds from any linked Middlesex accounts.
- Rollovers & Transfers: Transfer funds from an existing IRA at another financial institution or rollover your 401(k) or other qualified retirement account to your IRA. Funds maintain tax-deferred status if rolled into another tax-deferred account.
Retirement CDs
Individual Retirement Accounts, anchored by our dependable CDs, can help prepare you for a stable future.
- Fixed-rate CDs ranging from 3 - 71 months
- Variable-rate CD with a 12 - 18 month term
- Receive tax benefits by making CDs part of a Traditional or Roth IRA
Retirement Money Fund
Are you planning your retirement, but need a low cost option? With no annual fee and FDIC insured deposits, the Retirement Money Fund account is a smart way to diversify your retirement plan.
- FDIC insured
- No maintenance fee
- Potential tax benefits
Disclosures
All accounts subject to approval. This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult with a tax or legal professional regarding their individual situation.
Helpful Resources
