Products & Services
IRAs
The Bank of Whitewater offers two types of Individual Retirement Accounts (IRAs), each of which can provide various tax advantages to individuals saving for retirement. All IRA funds are invested in Bank of Whitewater Certificates of Deposit.
Traditional IRAs
- No setup or administration fees
- Contributions may be tax deductible (depending on income level)
- Penalty-free withdrawals are allowed at age 59 ½ and mandatory by age 70 ½
- Earnings are subject to taxation upon withdrawal
- Funds withdrawn prior to attaining age 59 ½ are subject to 10% penalty
Roth IRA
- No setup or administration fees
- Contributions are not tax deductible
- Penalty-free withdrawals are allowed at age 59 ½
- No mandatory distribution age
- Qualified distributions made during retirement years are tax-free
- Subject to income limitations
In addition to the above retirement plans, the Bank of Whitewater offers an account to assist in saving for education expenses.
Coverdell Education Savings Account (Education IRA)
- No setup or administration fees
- Beneficiary must be under the age of 18
- Contributions are not tax deductible
- Distributions are tax-free if used for qualified education expenses, such as tuition and fees, required books, supplies and equipment, and qualified expenses for room and board
- Account is subject to income limitations of contributor
The Bank of Whitewater strongly encourages speaking with a tax professional prior to the opening of a retirement or educational account in order to determine the specific tax advantages of each plan based on your unique circumstances.
