Secure your retirement

Roth IRAs are funded with after-tax contributions, meaning you pay taxes on the money before it goes into your account. In return, your earnings grow completely tax-free — no taxes on dividends, interest, or investment gains as your savings build over time.

A major benefit of this type of IRA is that under most circumstances, you can make tax-free withdrawals in retirement. Once you’ve reached age 59½ and held the account for at least five years, both your contributions and earnings can be withdrawn without owing federal income tax. You can also withdraw your original contributions at any time, tax- and penalty-free, giving you flexibility that many other retirement accounts don’t offer.

With a Traditional IRA, you can make tax-deductible contributions, subject to annual contribution limits set by the IRS. Depending on your income and whether you’re covered by a retirement plan at work, your contributions may reduce your taxable income for the year — giving you a tax break upfront while you save for retirement.

While there are certain restrictions on when you can begin taking distributions — and when you must — your investments earn income in your IRA tax-deferred. Withdrawals before age 59½ may be subject to a penalty, and required minimum distributions begin at age 73. In the meantime, your dividends, interest, and gains grow without being taxed year to year, with taxes owed only when you withdraw the funds in retirement.

Conduit IRAs are very similar to IRA Rollovers in that they can hold assets received from an employer-sponsored retirement plan. However, to maintain Conduit IRA status, the IRA may not receive contributions from any other sources, such as regular IRA contributions.

Rolling over your distribution from a qualified plan into a Conduit IRA enables you to preserve the tax-deferred status of your contributions and allows you to later roll these assets into another qualified plan.

If you are nearing retirement or a job change, and you have participated in your employer’s retirement plan, you may soon be eligible to receive a substantial sum of money from the plan.

You can receive your distribution as a single lump sum pay-out or other “eligible rollover distribution,” either of which can be rolled into an Individual Retirement Account (IRA) to secure tax advantages.

IRA Rollovers offer significant tax advantages. When you receive an eligible rollover distribution from your employer’s qualified plan, you can defer paying tax by rolling the distribution over into an IRA. You postpone paying tax until distributions begin, and the income generated by investing your eligible rollover distribution will also continue to grow on a tax-deferred basis.

If you face investment management decisions associated with a lump sum pay-out of retirement funds, contact one of our trust representatives to see how an IRA Rollover Trust can help avoid unnecessary taxation, provide experienced investment management, protect your retirement savings, and help you meet your retirement planning goals.