Your Pathway to a Secure Retirement Future
Planning for your retirement is important, and our IRA options are designed to help you achieve your long-term financial goals. Secure your financial future with an IRA from First Federal Savings Bank. Open your account today and take the first step towards a comfortable and fulfilling retirement.
Which IRA is Better?
The question many investors ask is, “Which is better – a Traditional IRA or a Roth IRA?” Both have their advantages depending upon your retirement goals. For most people, the bottom line is taxes. Do you want to pay now or pay later in retirement? The answer seems easy – whenever your tax bracket is lower. However, the challenge is guessing what your taxes may be in the future. If you think your taxes will stay the same or be higher, the Roth IRA has the potential for a tax-free earnings advantage. First Federal Savings Bank can help you with any additional questions. Source: The Hartford
Traditional IRA
Features & Contributions
- Earnings are tax-deferred
- Contributions may be tax deductible¹
- You must have earned income to make a contribution
- Customers who are age 50 or over may make Catch-Up Contributions
- Contributions for the previous tax year may be made up to April 15th of the current year
- Contributions are 100% of earned income or based upon the following table, whichever is less:
| Tax Year | Standard Limit | Additional Catch-Up Contribution Limit | Total Contribution Limit for Age 50 or Over |
| 2024 | $7,000 + COLA² | $1,000 | $7,000 + COLA² + $1,000 |
Rollovers, Transfers, & Distributions
- Funds from other qualified retirement plans may be rolled over into a Traditional IRA
- Funds from Traditional IRAs at other institutions may be transferred or rolled over into a Traditional IRA at First Federal Savings Bank
- Distributions taken prior to the IRA owner reaching age 59½ are generally subject to a 10% IRS penalty
- IRA owners reaching age 73 are required to begin taking minimum distributions based upon their life expectancy
Roth IRA
Features & Contributions
- Earnings are tax-deferred
- Contributions are not tax-deductible
- Customers reaching age 73 are not required to take distributions
- You must have earned income to make a contribution
- Contributions for the previous tax year may be made up to April 15th of the current year
- In general, contributions may be made up to 100% of earned income or the amount listed in the following table:
| Tax Year | Standard Limit | Additional Catch-Up Contribution Limit | Total Contribution Limit for Age 50 or Over |
| 2024 | $7,000 + COLA² | $1,000 | $7,000 + COLA² + $1,000 |
Rollovers, Transfers, & Conversions
- Funds from Roth IRAs at other institutions may be transferred or rolled over into a Roth IRA at First Federal Savings Bank
- Traditional IRA funds may be converted to a Roth IRA. This transaction may be taxable¹
- Customers reaching age 73 are not required to take distributions
- Qualified distributions from a Roth IRA may be tax and/or penalty-free
