Individual Retirement Accounts
Pacific Valley Bank wants your future to be comfortable.
We offer both Traditional and Roth Individual Retirement Accounts (IRA) to help meet your financial needs. Our fixed interest rate IRA certificates of deposit take the uncertainty out of financial planning. Use the table below to determine which product is best suited for your individual situation.
Then let a member of our experienced customer service team show you how easy it is to rollover your existing IRA or 401(k) assets into a Pacific Valley Bank IRA.
|Features||Traditional IRA||Roth IRA|
|Age Eligibility||Anyone who earned income and is younger
than age 70 ½ in the contribution year.
|Contributions don’t have to stop when you reach age 70 ½. As long as you have earned income that qualifies you can put money into an account.|
|Income Eligibility||None||$135,000 (single tax return)(1)
$199,000 (joint tax return)(1)
|Earnings||Earnings are tax-deferred until withdrawn.||Earnings are subject to tax unless withdrawn as a qualified distribution (as defined by the IRS).|
|Maximum Annual Contributions(2)||$5,500 ($6,500 if age 50 or older) or 100% of earned income, whichever is less.||$5,500 ($6,500 if age 50 or older) or 100% of earned income, whichever is less.|
|Deductibility of Contributions||May be tax-deductible if you do not participate in an employer’s plan or your income is below certain levels.||Not tax-deductible|
|Will I Pay Tax on Withdrawals?||You will pay ordinary income tax on withdrawals of all traditional IRA earnings and on any contributions you originally deducted on your taxes.||Entirely tax-free if you meet certain conditions. As long as you take them after you reach 59 ½ and you have met the 5-year holding period requirement.|
|Early Withdrawal (4)||The taxable portion of a withdrawal prior to age 59 ½ may be subject to federal and state income tax and an additional 10% penalty tax, unless an exception applies.||The taxable portion of a withdrawal prior to age 59 ½ may be subject to an additional 10% penalty tax, unless an exception applies.|
|Age for Required Withdrawal Requirements||Required minimum withdrawals must begin by April 1st of the calendar year you turn the age 70½.||No age requirements to begin withdrawals. (3)|
|Annual Maintenance Fee||None||None|
Note: Pacific Valley Bank nor it’s employees are tax or legal advisors. Consult your Tax or Legal Advisor for specific tax-related rules and information regarding your own specific situation.
(1) The $5,500 ($6,500 if age 50 or older) maximum Roth IRA contribution is reduced for those with income between $120,000-$135,000 (single) and $189,000-$199,000 (joint).
(2) Total annual contributions to all IRAs (Traditional and Roth) cannot exceed $5,500 ($6,500 if age 50 or older) per spouse.
(3) Although there are no required minimum distributions during the account owner’s lifetime, distribution requirements do apply at death.
(4) You may also be subject to an early withdrawal penalty if a withdrawal occurs prior to your Certificates of Deposit matures. See Personal Certificates of Deposit for more information.