Roth IRA vs Traditional IRA:
Exploring Which Type of IRA is Right for You

There are two primary types of IRAs - Traditional and Roth. The type of individual retirement account you choose can significantly affect you and your family’s long-term savings and each offers tax advantages and a wide variety of investment choices. Exploring your options will help you determine which type of IRA best suits your retirement needs.

We offer Traditional, Roth, and Educational IRA's tailored to your individual needs. A $250 minimum balance makes this a great way to take advantage of tax benefits.

Traditional IRA

When other retirement plans or financial resources fall short, a Traditional IRA can be a valuable retirement savings tool. With so many incentives for placing your money in an IRA, including multiple tax advantages, a Traditional IRA may be just the right savings vehicle for you.

As long as you are under age 70½ and are earning income from personal services rendered, you can establish and contribute to a Traditional IRA.

  • Tax deductible contributions (depending on income level)
  • Withdrawals can begin at age 59½ and are mandatory by age 70½
  • Tax deferred earnings *
  • Available to everyone, without income restrictions
  • Possible penalty for early withdrawal

Roth IRA

A Roth IRA provides tax free growth of your money in lieu of getting a tax deduction. Think of a Roth IRA as an umbrella, and you can put almost anything that you want under it. A Roth IRA may be invested in stocks, bonds, mutual funds, certificates of deposits, and/or money market accounts.

Unlike Traditional IRAs, Roth IRAs have certain income eligibility restrictions. Each year, the IRS updates the rules for Roth IRAs. For more info about the current rules governing Roth IRAs please talk to a First Enterprise Bank personal banker.

  • Contributions are not tax deductible
  • No mandatory distribution age
  • All earnings and principal are 100% tax free if rules and regulations are followed *
  • Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions)
  • Eligibility restrictions based on income level
* Consult with your tax advisor about the deductibility of interest.