Individual Retirement Accounts

An Individual Retirement Account (IRA) is an easy way to save for your retirement years. Depending on the type of IRA you choose, your earnings are either tax deferred or tax free—and with regular contributions to your account, your savings can really grow over time.

First Citizens offers a variety of FDIC-insured options to help you make the most of your savings:

  • Fixed-Rate Time Deposit—offers a guaranteed rate, with terms from 6-60 months
  • Variable Rate Time Deposit—variable interest rate based on market conditions, 18-month term
  • FDIC insured up to $250,000 per individual account owner

Roth IRA

  • Contributions are made with after-tax dollars, and your earnings are tax-free upon withdrawal
  • There are no age limits for contributing or withdrawing, and you may contribute regardless of whether you participate in an employer-sponsored plan
  • To be eligible for a Roth IRA in tax year 2011, your Modified Adjusted Gross Income must be less than $122,000 for single taxpayers or less than $179,000 for married taxpayers filing jointly. For tax year 2012, the Modified Adjusted Gross Income limits are $125,000 for single taxpayers and $183,000 for married taxpayers filing jointly.
  • Effective January 1, 2010, the income restrictions for converting to a Roth IRA were lifted indefinitely, making you eligible to convert a Traditional, SEP or SIMPLE IRA to a Roth IRA regardless of your income. Typically you will pay income tax on the taxable amount converted.

Traditional IRA

  • Contributions may be tax deductible
  • You are not taxed on earnings until you withdraw funds at retirement
  • There are no income limits, and anyone under age 70 1/2 with earned income is eligible to contribute

Simplified Employee Pension (SEP) IRA

If you are self-employed or are a small business owner, a SEP is a great way to establish a retirement plan for you and your employees.

  • Employers make tax-deductible contributions into a Traditional IRA in the name of each employee
  • Employees enjoy tax-deferred earnings
  • Plan is easy to establish and maintain

Rollover IRAs

If you're changing jobs or retiring, you may be having funds disbursed from a tax-qualified retirement plan. By taking a cash payout, you may be faced with substantial tax consequences.

By "rolling over" funds that have not yet been taxed into a Rollover IRA you can help keep your nest egg keep growing, tax-deferred. Plus, you can continue making annual contributions to your IRA, to help reach your goals faster.

A First Citizens banker can help you determine which IRA suits your needs.

For more information or to open your account, stop by your local Branch Office or call 1-888-612-4444.

This information should not be considered tax advice. Any tax-related decisions should be made only after consultation with your tax advisor.

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