Personal Banking
Retirement
Most folks agree that Social Security alone will not be enough to ensure a comfortable retirement. It is impossible to know what the future holds, but Parkvale can help you save now for your retirement years and get a substantial tax break* with an IRA. FDIC insured Individual Retirement Arrangements (IRA) are an essential part of any retirement portfolio.
For more information on any of our retirement products, please call our Senior Retirement Consultant at 412-373-4830.
*The information on retirement plans and accounts provide only general highlights of each type of IRA and is not meant to be all inclusive. Please consult a tax advisor for advice regarding your particular situation.
Our Retirement Calculator can help determine the amount of money to save each year to reach your financial goals.
IRA Passbook
IRA CDs
Traditional IRA
Roth IRA
Rollovers
SEP IRA
Not sure how to set up an Individual Retirement Account? The IRA Passbook is a natural starting point. Simply make regular deposits to an IRA Passbook account, which earns a guaranteed rate of interest. Then, when your balance warrants it, roll the funds into a higher yielding IRA Certificate of Deposit (CD).
If saving for retirement or an education is part of your plan, Parkvale has an account to fit your needs. No matter your income level, you can usually benefit from an IRA CD's tax-deferred earnings growth.
Traditional IRAs
An IRA is a personal savings plan that offers tax advantages to an individual who sets aside money for retirement. Your contributions may be tax-deductible. And since your investment earns before-tax dividends and interest, it accumulates faster. The tax-deferred earnings accumulated in the plan are taxable, however, upon distribution when your income – and tax rate – are expected to be lower.*
Who Is Eligible For A Traditional IRA Account?
- Anyone under age 70-1/2 with taxable compensation.
- Earnings (interest you earn) are tax-deferred until you start withdrawing funds.
- Contributions to a Roth and/or Traditional IRA are limited to a combined $5,000 per year, or 100% of your earned taxable income, whichever is less, including contributions for a non-working spouse (or, if you're 50 or older, but under the age of 70-1/2 by the end of the tax year, you may make a "catch up" contribution in the amount of $6,000).
Roth IRAs
Unlike traditional IRAs, contributions to a Roth IRA are not tax-deductible dollars. The qualified distribution of earnings may be tax-free.*
Who Is Eligible for a Roth IRA Account?
Anyone who has taxable compensation (or who is filing jointly with a spouse who has taxable income) with the following MAGI - Modified Adjusted Gross Income:
- 2008: below $116,000; 2009: below $120,000 (single filers)
- 2008: below $169,000; 2009: below $176,000 (joint filers)
Contributions (not earnings) can be withdrawn at any time tax-free*.
Contributions to a Roth and/or Traditional IRA are limited to a combined $5,000 per year, or 100% of your earned taxable income, whichever is less, including contributions for a non-working spouse (or, if you're 50 or older, but under the age of 70-1/2 by the end of the tax year, you may make a "catch up" contribution in the amount of $6,000).
Rollovers
If your employer has a qualified employer sponsored plan, such as 401(k), you may be able to rollover these funds into a Parkvale IRA CD and continue the tax-deferred status. Typically, you qualify for a rollover only when you are eligible to receive a distribution from a qualified plan. Such situations would include retiring, changing jobs or switching careers. Be sure to check with a Parkvale Retirement Consultant before taking any withdrawal from your plan to make sure the distribution is set up properly.
SEP IRA
A simplified employee pension (SEP) IRA is an employer sponsored retirement plan. The employer's contributions are placed in employees' traditional IRAs. The employer does not administer the funds after they are deposited into the employees' accounts.
Contributions to a SEP plan are tax deductible; they will lower a taxpayer's income tax liability in the current year. SEP-IRA funds enjoy tax-deferred earnings until qualified withdrawals are taken after age 59-1/2 (the same rule as for traditional IRAs).
