Individual Retirement Accounts (IRAs)

What is an IRA?

Anyone can open an Individual Retirement Account to save for the future. An IRA can be an alternative or a complement to an employer-sponsored retirement savings plan such as a 401(k).

• Tax-advantaged savings*
• Competitive interest above standard savings rates
• Traditional and Roth IRA options available
• No setup fees
• No monthly or annual maintenance fees
• Annual contribution limits apply (see current contribution limits; $7,000 as of 2024)
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to purchase CDs within IRA
  • A wide range of terms available (from 12 months to 6 years)
• $100 or $1,000 minimum deposit to open, depending on the term you choose

Start Saving For Retirement Today!

Are you ready to open an Individual Retirement Account? Still have questions? You can open a new IRA savings account online in minutes or visit your nearest branch location in Clarks Summit, Scranton, Taylor, Honesdale, or Mount Pocono, PA.

Learn more about traditional and Roth IRAs in our brochure (PDF).

Learn more about traditional and Roth IRA distributions in our brochure (PDF).

Traditional IRA vs. Roth IRA

There are two types of IRA accounts and they both offer unique benefits. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit when you retire.

Traditional IRA

• No income limits to open
• No minimum contribution requirement
• Contributions are tax deductible on federal income tax*
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59 ½
• Early withdrawals subject to penalty**
• Mandatory withdrawals at age 72

Roth IRA

• Income limits to be eligible to open Roth IRA***
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal*
• Principal contributions can be withdrawn without penalty*
• Withdrawals can begin at age 59 ½
• Early withdrawals on interest subject to penalty**
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

Learn more about traditional and Roth IRAs in our brochure (PDF).

Learn more about traditional and Roth IRA distributions in our brochure (PDF).

*Subject to some minimal conditions. Consult a tax advisor.

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

***Consult a tax advisor.

Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow competitive interest and also financial confidence for a new stage in life.

• Set aside funds for your child's education
• No setup or annual fee
• Interest grows tax-free
• Withdrawals are tax-free and penalty-free when used for qualified education expenses*
• Designated beneficiary must be under 18 when contributions are made
• To contribute to an ESA, certain income limits apply**
• Contributions are not tax deductible
• $2,000 maximum annual contribution per child
• The money must be withdrawn by the time he or she turns 30***
• The ESA may be transferred without penalty to another member of the family
• $100 or $1,000 minimum deposit to open (12 to 72 months)

*Subject to some minimal conditions. Consult a tax advisor.

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

***Consult a tax advisor.