Retirement Account Solutions

Choosing a retirement plan is an important decision. You will want to be sure that the money you set aside for your retirement is safe and secure.

An individual retirement account, or IRA, is a personal savings plan that allows you to set aside money for retirement while offering tax advantages. NBW offers a wide variety of FDIC insured IRA plans with coverage up to $250,000.00. We offer a variable rate IRA that you can make additional deposits to and also Fixed Rate IRA CDs in term from 182 days to 5 years.

Let us help you choose the account that will work for you so that you can relax, knowing that you are saving now for a comfortable retirement later. We do highly recommend that you consult your tax or legal professional for tax implications.

Traditional IRA Account

If eligible under certain income limitations, you can deduct your contributions to a traditional IRA on your federal income taxes. Earnings on your contributions grow tax-deferred. Withdrawals are subject to ordinary income tax.

Roth IRA Account

Contributions to a Roth IRA do not qualify for an up-front tax deduction, however, you can withdraw your contributions and their earnings tax-free if the account has been established for five years.

Comparing Tax Benefits of the Traditional IRA to the Roth IRA

The Roth IRA is particularly attractive for investors who fear that their tax rates during retirement may be higher than their tax rates today. In effect, the Roth IRA allows you to “lock in” your tax rate today.

On the other hand, if you expect your tax rate to be lower when you make withdrawals – a strong possibility during retirement – a traditional IRA could save you more in taxes, both today and in the future.

Coverdell Education Savings Account

The Coverdell Education Savings Account is a nondeductible account that features tax-free withdrawals for a very specific purpose – a child’s education expense.¬†Higher education distributions are permitted from these accounts and are penalty free and federal income tax free. The total aggregate contribution into one or more CESAs on behalf of a child is $2,000 a year. Each CESA will have a responsible individual, usually the child’s parent or legal guardian.¬†That individual has control of the assets until the child reaches the age of majority and in some cases, even after that date.

Don’t wait. Contact us today to open your IRA. Consult your Tax or Legal Professional for tax implications.