Individual Retirement Accounts (IRAs)
Overview
Securing your future starts today. IRAs offer special advantages for the savings you have set aside for retirement. First Citizens offers a wide array of retirement options to fit your needs.
Tax-deferred earnings
TRADITIONAL IRA
- Contributions may be tax-deductible
- Anyone under age 70½ with earned income can contribute
- After age 59½ withdrawals are allowed without penalty
Contributions are made with after-tax dollars
ROTH IRA
- Tax-free withdrawals while in retirement
- Withdraw contributions penalty-free after account has been open 5 years or any time after the age of 59½
- Contribute up to $5,500 annually per taxpayer (Plus an additional $1,000 catch-up contribution if over age 50)
Greater flexibility for self-employed individuals
Simplified employee pension (SEP) IRA
- Low-cost, easy-to-maintain retirement plan for business owners and their employees
- No required annual contributions
- Employees retain 100% ownership of their investments
Offer your employees a salary deferral plan
savings incentive match plan for employees (simple) IRA
- Available for small businesses with 100 employees or fewer
- Enables employees to make pre-tax salary deferral contributions to an IRA account
- Employer contributions can match dollar-for-dollar or a flat percentage of wages
Bank deposit products are offered by First Citizens Bank, Member FDIC, Equal Housing Lender. Account openings are subject to Bank approval.
Investments in securities, annuities and insurance are not insured by the FDIC or any federal government agency; may lose value; are not a deposit or other obligation of, or guaranteed by, any bank or bank affiliate; and are subject to investment risks, including possible loss of the principal amount invested. Brokerage and some investment advisory services are offered through First Citizens Investor Services, Inc. Member FINRA/SIPC.
Compare Accounts
| Account type | Traditional IRA | Roth IRA | SEP IRA | SIMPLE IRA | |
|---|---|---|---|---|---|
| Learn More | Learn More | Learn More | Learn More | ||
| Best if you want | A retirement savings account that grows on a tax-deferred basis until you withdraw the funds. | A retirement savings account that has the potential for tax-free growth. | A retirement account for self-employed business owners who have very few or no employees. | To offer your employees a retirement savings plan that allows them to make pre-tax contributions. | |
| Eligibility | Individual investors under age 70½ with earned income. | Individual investors, of any age, with earned income and an Adjusted Gross Income (AGI) within the allowable limits. | Must be a sole proprietor, a business owner in a partnership or earn self-employment income. | Business owner must have 100 or fewer employees who earned at least $5,000 in the previous year and cannot offer any other retirement plan option. | |
| Annual Contribution Limits | 2014 - $5,500 Age 50+ an additional $1,000 catch-up contribution is allowed |
2014 - $5,500 Age 50+ an additional $1,000 catch-up contribution is allowed |
In 2014, you can contribute 25% of eligible compensation or $52,000, whichever is lesser, for yourself and each employee, with a $245,000 compensation cap per employee. | Plan Sponsor – Mandatory 3% matching contribution or 2% non-elective contribution Participants - Up to $12,000 of compensation annually. Employees age 50 and older can defer an additional catch-up contribution of up to $2,500. |
|
| Tax Deductible Contributions1 | Contributions may be tax deductible; consult your tax advisor for details. | No | Deductible as a business expense and pre-tax contributions for employees. | Deductible as a business expense and pre-tax contributions for employees. | |
| Taxes on Withdrawals1 | Deductible contributions and earnings are subject to taxes at withdrawal. | Withdrawals of contributions are always tax free. Earnings are tax free after five years if owner is 59½ or older, disabled, deceased or a first-time home buyer. | Earnings are subject to taxes at withdrawal. | Earnings are subject to taxes at withdrawal. | |
| Withdrawal Penalties | Minimum required distributions start at age 70½. 10% early withdrawal penalty if under age 59½, unless an exception applies. | 10% early withdrawal penalty if under age 59½, unless an exception applies. | Minimum required distributions start at age 70½. 10% early withdrawal penalty if under age 59½, unless an exception applies. | Minimum required distributions start at age 70½. 10% early withdrawal penalty (25% during the first two years of plan participation) if under age 59½, unless an exception applies. | |
| FDIC Insured Investment Options2 | Options include FDIC-insured CDs and Money Market accounts. | Options include FDIC-insured CDs and Money Market accounts. | Options include FDIC-insured CDs and Money Market accounts. | Options include FDIC-insured CDs and Money Market accounts. | |
| Non-FDIC Insured Investment Options3 | Options include mutual funds, stocks, bonds, US Treasuries, annuities, and Exchange-traded funds (ETFs). | Options include mutual funds, stocks, bonds, US Treasuries, annuities, and Exchange-traded funds (ETFs). | Options include mutual funds, stocks, bonds, US Treasuries, annuities, and Exchange-traded funds (ETFs). | Options include mutual funds, stocks, bonds, US Treasuries, annuities, and Exchange-traded funds (ETFs). | |
| Contribution Deadline | Contributions can be made up to each year’s federal income tax return filing deadline, usually April 15. | Contributions can be made up to each year’s federal income tax return filing deadline, usually April 15. | Employer contributions can be made until the business tax filing deadline for the year, including extensions. | Contributions can be made up to each year’s federal income tax return filing deadline, usually April 15. | |
| Account type | Traditional IRA | Roth IRA | SEP IRA | SIMPLE IRA | |
| Learn More | Learn More | Learn More | Learn More | ||
1. Consult your tax advisor.
2. Bank deposit products are offered by First Citizens Bank, Member FDIC, Equal Housing Lender. Account openings are subject to Bank approval.
3. Investments in securities, annuities and insurance are not insured by the FDIC or any federal government agency; may lose value; are not a deposit or other obligation of, or guaranteed by, any bank or bank affiliate; and are subject to investment risks, including possible loss of the principal amount invested. Brokerage and some investment advisory services are offered through First Citizens Investor Services, Inc. Member FINRA/SIPC.
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