Individual Retirement Accounts (IRAs)
Plan now for your financial future. In addition to a company retirement plan or Social Security benefits, Middlesex Savings Bank can help grow your retirement savings with an Individual Retirement Account (IRA) to help you retire comfortably.
How it works:
- Choose your retirement product: With Middlesex Savings Bank, you have the option of two types of Individual Retirement Accounts: retirement money fund accounts or retirement certificates of deposit (CDs). Both are FDIC insured and have no monthly account fee.
- Choose your IRA type: Select a Traditional or Roth IRA. Each retirement account option 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 retirement savings account: Put an initial contribution into your individual retirement account. Add funds to a Retirement Money Fund Account 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 total earnings can grow tax-free and your withdrawals will be tax-free when they are “qualified”.
- Traditional IRA: Your account 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 Savings Bank branch, or transfer funds from any linked Middlesex Savings Bank 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 Certificates of Deposit, can help prepare you for a stable financial future with great interest rates.
- Fixed-rate CDs ranging from 3 months to 5 years
- 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 Account
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 account maintenance fee
- Potential tax benefits
Middlesex Savings Bank is a full-service bank serving individuals, families, and business owners throughout central and eastern Massachusetts.
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.
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