Individual Retirement Accounts (IRAs)
Building your savings to provide for a good retirement isn't difficult. It just takes the right tool. An IRA from NBDC is just what you need to get started!
We offer a variety of tax advantaged IRAs, including SIMPLE IRAs for self-employed individuals. Read more about our retirement options below, or contact one of our knowledgeable staff to find out which is right for you.
- Summary
- Interest bearing accounts
- No setup fees or maintenance charges
- Traditional, Roth, and SIMPLE IRAs available
- Earnings compounded quarterly
- Various terms available
- $500 minimum to open fixed rate IRA
- $100 minimum to open variable rate IRA
- NOTE: We automatically roll over our IRAs at maturity at the current rate of interest and term and give you 10 calendar days to change the term.
- Traditional vs. Roth
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These two are the most popular kinds of retirement accounts, but most people don't really understand the difference between the two.
The main factor you should consider when deciding which type of IRA works for you is: when do you want to pay the taxes on your contributions? With a traditional IRA, your contributions are tax deductible, but you'll have to pay when you withdraw funds. This might be better if you'll be in a better financial position at that time.
With a Roth IRA, you pay taxes on your money now, while you're earning it. When you withdraw funds, there will be no tax to pay. This might be better if, for example, you're on a fixed income at that time.
Of course, there are other distinctions. Read more below, consult a tax professional, or contact us to learn more.
Traditional IRAs
- Contributions are tax deductible*
- Interest earnings are tax deferred
- $5,000 annual contribution limit
- Additional $1,000 "catch-up" contribution for ages 50 and up
- Withdrawals can begin at age 59½
- Penalty for early withdrawal**
We automatically roll over our IRAs at maturity at the current rate of interest and term and give you 10 calendar days to change the term. Unlike most institutions, we do not charge any hidden costs or maintenance fees.
Roth IRAs
- Funds are tax free upon withdrawal*
- Contributions are NOT tax deductible
- Withdraw earnings after age 59½
- $5,000 annual contribution limit
- Additional $1,000 "catch-up" contribution for ages 50 and up
- Penalty for early withdrawal**
*Some restrictions apply. Contact your tax advisor for details.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
- SIMPLE IRAs
These IRAs are meant for small businesses that wish to set up self-funded retirement plans for their employees. These accounts are available to for-profit and non-profit employers who have no more than 100 employees.
- Ideal for small businesses and self-employed individuals
- Employees can contribute on a tax-deferred basis
- Employer can match up to 3% of employee's contribution
- All earnings are tax deductible
- Lower cost than other retirement plans
- Maximum 100 employees allowed
- Easy to get started and run
