Individual Retirement Account (IRA)

Individual Retirement Account (IRA)

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Details

The best time to save for your retirement is right now while you're still earning income. An IRA offers tax advantages* to help you meet your financial goals.

We offer different IRAs to serve different needs. Talk to a Harleysville Savings Bank representative about which plan is right for you and your family.

  • Save for retirement and enjoy tax advantages*
  • Earn higher interest than regular savings
  • No setup or maintenance fees
  • Annual contribution limits apply
  • Annual $1,000 "catch up" contributions allowed for ages 50+
  • FDIC insured up to $250,000
  • $500 minimum deposit to open

*Consult your tax advisor

Traditional versus Roth

Traditional IRA

  • Anyone under age 70½ may open
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70½

*Consult with a tax advisor

**Certain exceptions apply, such as healthcare, purchasing first home, etc.


Roth IRA

  • Income must be less than $120,000 annually to open ($177,000 for married couples)
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals on interest can begin at age 59½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age

*Subject to some minimal conditions.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

Coverdell Education Savings Account (CESA)

A Coverdell Education Savings Account (CESA) provides tax-free earnings when the funds are used for a child's education expenses.

There are no age or compensation requirements to open and contribute to a CESA; you do not even need to be related to the child you are contributing for. The interest is 100% tax free and withdrawals can be made at any time when used for qualified education expenses.

  • Save for a child's education and have interest grow tax-free*
  • Enjoy tax free withdrawals* when used for qualified education expenses**
  • Contributions are not tax deductible*
  • Annual contribution limits per child apply
  • Contributions can be made until the child is 18 years old
  • Funds must be distributed when recipient reaches age 30
  • Contributors do not have to be related to recipient
  • FDIC insured

*Qualified expenses include tuition and fees, books, supplies, board, etc.

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