Retirement Accounts

Traditional IRA | Roth IRA | Education IRA

• Traditional IRA

  The Traditional IRA allows you to defer taxes on your earnings until they are withdrawn. You are eligible for a Traditional IRA if you are under age 70-1/2 for the entire tax year and either you or your spouse had earned income. For specific eligibility requirements, you are encouraged to consult your tax or legal advisor. Even if you are not eligible for a deduction, you may still make a non-deductible contribution and take advantage of tax-deferred earnings.

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• Roth IRA

  The Roth IRA is a nondeductible account that features tax-free withdrawals for certain distribution reasons after a five year holding period. To be eligible for a Roth IRA, either you or your spouse must have earned Income and your modified adjusted gross income (MAGI) may not exceed certain limits. Contributions to a Roth IRA are not tax deductible. There is no mandatory distribution age for a Roth IRA. Contributions may also be made beyond age 70-1/2.

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• Education IRA

  The Education IRA is a nondeductible account that features tax-free withdrawals for a child's higher education expense. Eligibility considerations are:
  – The child for whom you are contributing may not have had any contributions made on their behalf to a state prepaid tuition program in that year.
  – Your modified adjusted gross income (MAGI) cannot exceed certain limits
  – Withdrawals from an Education IRA for higher education purposes are penalty free and tax-free.

  Should you require additional information on any North Middlesex Savings Bank retirement product, please contact your local branch or our Customer Service Department at 978-772-3306.
   

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