IRA Retirement Accounts
Start saving for retirement.
What is an Individual Retirement Account (IRA)?
No matter your age, it’s never too early or too late to start saving for retirement. An Individual Retirement Account (IRA) is a tax-advantaged savings account for retirement. Choose between a Traditional or Roth IRA to plan for your retirement in Bucks County. As an independent community bank for 160 years and counting, The First is your local banking partner for every stage of life. For help choosing the account that’s right for you, contact us today.
Individual Retirement Accounts (IRAs) were created to encourage individuals to save and supplement their retirement savings. Multiple deposits can be made at any time, up to the annual contribution limit. There is no term on the IRA Savings Account, so there will not be any bank penalties for withdrawals, but IRS penalties may incur if you withdraw money before age 59 ½.
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Statement Savings | Money Market Savings | Kids First Savings | Holiday | Special Purpose | IRA |
|
|---|---|---|---|---|---|---|
| Earns Interest | ||||||
| **ATM Card | ||||||
| Minimum Balance to Open | $1.00 | $1.00 | $1.00 | $5.00 | $5.00 | $25.00 |
| Minimum Balance to Earn Interest | $100.00 | $2,500.00 | $50.00 | $5.00 | $5.00 | $25.00 |
| Free Online Banking | ||||||
| Interest Paid | Monthly | Monthly | Credited Monthly | Yearly | At end of Term | Monthly |
| Fees | **$1.00 per month per card | |||||
| Service Charge if Below Minimum | $3.00 if minimum balance is not maintained. | $5.00 if minimum balance is not maintained. Allowed 6 Transfers per month. |
IRA Account Details
- Fixed Interest: Fixed interest rate accounts are available where a lump-sum amount is deposited at the time of opening. Minimum deposit amount is $500.
- Statements: Each account holder is provided with an annual statement. If you have a checking account with The First, we can link the IRA Savings Account with your monthly checking account statement so you can watch your money grow month-to-month.
- Fees: We do not charge any service or administrative fees.
- Auto Transfer: We offer automatic transfers from another deposit account at The First into your IRA account free of charge.
- FDIC Insurance: up to $250,000 for each individual’s total retirement plan.
Traditional vs. Roth IRA
These two types of IRA accounts have the same contribution and age limits, but different potential tax benefits.
Traditional IRA
Contributions to your traditional IRA may be completely tax-deductible for the tax year in which they are made.
Roth IRA
Contributions to your Roth IRA account are not tax-deductible. However, earnings grow tax-free and you can enjoy tax-free withdrawals in retirement.
With both Traditional and IRA accounts, distributions may start at the age of 59.5. If the required amount is not withdrawn by the applicable deadline the IRS will penalize 25% of the amount.
IRA Rates
Fixed Rates
| 6-11 Month | |
|---|---|
| Minimum Balance to Obtain Annual Percentage Yield* | $500 |
| Interest Rate | 0.15 % |
| Annual Percentage Yield | 0.15 % |
| 12-17 Month | |
|---|---|
| Minimum Balance to Obtain Annual Percentage Yield* | $500 |
| Interest Rate | 0.25 % |
| Annual Percentage Yield | 0.25 % |
| 18-23 Month | |
|---|---|
| Minimum Balance to Obtain Annual Percentage Yield* | $500 |
| Interest Rate | 0.35 % |
| Annual Percentage Yield | 0.35 % |
| 24-35 Month | |
|---|---|
| Minimum Balance to Obtain Annual Percentage Yield* | $500 |
| Interest Rate | 0.40 % |
| Annual Percentage Yield | 0.40 % |
| 36-47 Month | |
|---|---|
| Minimum Balance to Obtain Annual Percentage Yield* | $500 |
| Interest Rate | 0.55 % |
| Annual Percentage Yield | 0.55 % |
| 48-59 Month | |
|---|---|
| Minimum Balance to Obtain Annual Percentage Yield* | $500 |
| Interest Rate | 0.80 % |
| Annual Percentage Yield | 0.80 % |
| 60-Month | |
|---|---|
| Minimum Balance to Obtain Annual Percentage Yield* | $500 |
| Interest Rate | 0.95 % |
| Annual Percentage Yield | 0.95 % |
* Minimum opening deposit of $500.00
Account Terms
The following account terms apply to all accounts in this category unless otherwise marked:
Annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings.
The interest rate for your account will be paid until the maturity date of your certificate.
This account will automatically renew at maturity. You will have ten (10) calendar days from the maturity date to withdraw your funds without being charged a penalty.
Once opened, you may not make deposits into or withdrawals from this account until the maturity date.
Interest begins to accrue no later than the business day you deposit noncash items (i.e., checks).
If any of the deposit is withdrawn before the maturity date, a penalty will be imposed.
Interest will be calculated on the daily balance method. This method applies a daily periodic rate to the principal in the account each day.
An interest penalty may be assessed if a certificate of deposit is withdrawn before the maturity date.
Rates and yields are effective as of:
Required Minimum Distributions For IRAs
| Age of Retiree | Distribution period (in years) | Age of Retiree | Distribution Period (in years) |
|---|---|---|---|
| 70 | 27.4 | 93 | 9.6 |
| 71 | 26.5 | 94 | 9.1 |
| 72 | 25.6 | 95 | 8.6 |
| 73 | 24.7 | 96 | 8.1 |
| 74 | 23.8 | 97 | 7.6 |
| 75 | 22.9 | 98 | 7.1 |
| 76 | 22.0 | 99 | 6.7 |
| 77 | 21.2 | 100 | 6.3 |
| 78 | 20.3 | 101 | 5.9 |
| 79 | 19.5 | 102 | 5.5 |
| 80 | 18.7 | 103 | 5.2 |
| 81 | 17.9 | 104 | 4.9 |
| 82 | 17.1 | 105 | 4.5 |
| 83 | 16.3 | 106 | 4.2 |
| 84 | 15.5 | 107 | 3.9 |
| 85 | 14.8 | 108 | 3.7 |
| 86 | 14.1 | 109 | 3.4 |
| 87 | 13.4 | 110 | 3.1 |
| 88 | 12.7 | 111 | 2.9 |
| 89 | 12.0 | 112 | 2.6 |
| 90 | 11.4 | 113 | 2.4 |
| 91 | 10.8 | 114 | 2.1 |
| 92 | 10.2 | 115 or older | 1.9 |
Contribution Limits For 2024:
- Under age 50: $7,500
- Age 50+: Can make an additional “catch-up contribution” of up to $1,000.
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Open an IRA Savings Account Today
Questions about our IRA savings accounts? Call us today for more information, apply online, or visit one of our locations to get started!
