Tax Advantages: Anyone can invest in Individual Retirement Accounts, also called IRAs. Many taxpayers are able to reduce their taxable income and thus their current taxes by deducting amounts contributed to an IRA.  Interest earned on IRA’s, unlike interest earned on other types of savings and investment accounts, is also not taxed until the account holder begins to withdraw funds.

When IRA holders begin to withdraw from their IRAs, the withdrawals are added to income and taxes are paid on the amounts withdrawn.  However, when most people begin taking distributions they are living primarily on Social Security and pensions putting them in lower tax brackets.  IRAs are intended as true retirement accounts.  In most cases, except death or disability, withdrawals from an IRA before an account holder reaches retirement age (59½) are subject to a penalty in addition to regular taxes.

Roth IRA: Those who would rather avoid paying taxes on their retirement investments during retirement can take advantage of Roth IRAs.  Funds invested in Roth IRAs are not tax deductible.  However, when distributions are taken during retirement years, the amounts withdrawn are not taxable.  The funds earn interest tax-free and taxes are not paid on the amounts withdrawn.

Diversification: Many investment advisors recommend that investors diversify among several types of investments to maximize return and minimize risk.  Many individuals invest funds in company 401k plans and direct those investments to mutual funds containing mostly stocks.  While over the long term, stocks may provide healthy returns they are subject to market conditions and can fluctuate in value.  Your Individual Retirement Account funds at Mutual Bank are insured by FDIC, offer a sure and steady return, and the principal is always preserved.  During market declines many mutual fund investors have found, to their dismay, that funds they were depending on for retirement, declined as well.  A Mutual Bank IRA can serve as a stabilizing component within a retirement portfolio.  As individuals get closer to retirement age preservation of principal becomes more important than the possible higher returns on more speculative investments.  At that time a transfer or rollover of retirement funds to IRA certificates of deposit may be warranted.

We've focused on the most popular tax-advantaged investment options, including both traditional and Roth IRAs.

• Fixed Rate IRA Certificates of Deposit
  Choose from 12-, 24-, or 48-month terms. All earn daily interest, compounded monthly. In most cases, the longer the term, the higher the rate.
• Variable Rate IRA Certificate of Deposit
  Our 18-month term certificate can be opened with as little as $100. With the flexibility to allow additional deposits anytime, it's the perfect way to get started on your retirement planning.
• A single, low custodial fee is charged to your account annually, with no additional or hidden costs.
• Easy-to-read statements issued twice a year.