Individual Retirement Account (IRA)
An IRA from Thomaston Savings Bank is the ideal way to save for retirement, grow your wealth, and gain tax advantages, with Traditional, Roth, SEP, and Coverdell options to fit your goals. Add to it as you grow for an advantage in your taxable income now, and when you withdraw in retirement you'll be taxed at your lower retirement income rate, which can make a big difference in your savings. Choose from a Traditional IRA with tax-deductible contributions and deferred taxes or a Roth IRA where all earnings and principal are 100% tax-free upon qualified withdrawal. Visit any of our 16 Connecticut locations and our local team will help you find the right fit.
Find Out Which IRA is Right for You
Traditional IRA
- Tax-deductible contributions
- Federal and/or state withholding available upon withdrawal
- Penalties apply to withdrawals before age 59 ½
- As of 2023, required minimum withdrawals begin at age 73
Roth IRA
- Contributions are not tax-deductible
- All earnings and principal are 100% tax-free upon withdrawal
- No mandatory distribution age
- Income limits apply when attempting to open a Roth IRA1
Individual Retirement Account (IRA) Highlights
Tax advantages: You can defer tax payments until you withdraw your money or retire with a Traditional IRA, or pay taxes on the money you contribute today for tax-free withdrawal upon retirement with a Roth IRA.
Flexible options: You can choose from a variety of IRAs, including Traditional, Roth, SEP, and Coverdell, designed to meet your personal retirement goals.
Flexible investing: Work with our local team to help you decide how much you want to contribute each year and how your money is invested.
Easy and accessible: A Thomaston Savings Bank IRA is easy to set up and, depending on the type of IRA, contributions can be withdrawn at any time.
Individual Retirement Account (IRA) Contribution Limits
| IRA Plan Type | Catch up (Age 50+) | Contribution Limit |
|---|---|---|
| Traditional | $1,100 | $7,500 |
| Roth | $1,100 | $7,500 |
| SEP | – | $72,000 |
| Coverdell | – | $2,000 |
Retirement Income
Estimate your monthly retirement income based on your savings, expected returns, and current age.
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Frequently Asked Questions (FAQs)
A Traditional IRA allows tax-deductible contributions in some cases, with withdrawals taxed as income in retirement. A Roth IRA uses after-tax contributions, so all earnings and principal are 100% tax-free upon qualified withdrawal. Income limits apply when opening a Roth IRA. Consult your tax advisor for guidance specific to your situation.
Traditional, Roth, SEP, and Coverdell IRAs are available.
Annual contribution limits are $7,500 for Traditional and Roth IRAs, with a $1,100 catch-up contribution available for those age 50 and older. SEP IRA contributions can be up to $72,000 annually. Coverdell accounts allow up to $2,000 per year. Consult your tax advisor to confirm limits for your specific situation.
For Traditional IRAs, required minimum distributions begin at age 73 as of 2023. Roth IRAs have no mandatory distribution age.
Withdrawals from a Traditional IRA before age 59½ are generally subject to income tax and a 10% early withdrawal penalty unless an exception applies. Roth IRA contributions can typically be withdrawn without taxes or penalties; withdrawals of earnings may have restrictions.
A SEP (Simplified Employee Pension) IRA is designed for self-employed individuals and small business owners and allows significantly higher annual contributions than a Traditional or Roth IRA.
A Coverdell Education Savings Account is a tax-advantaged account used for qualified education expenses, with an annual contribution limit of $2,000.
IRAs are opened in branch. Visit any of TSB's 16 Connecticut locations to speak with a Client Service Associate about which account fits your retirement goals.
Yes. TSB's local team can help you decide how much to contribute each year and how your money is invested within the account.
Get Started
1Consult your tax advisor for current limits for your individual situation.
