- Money Management > IRAs
 Individual Retirement Accounts (IRAs) 

With the IRA contribution limit increased to $5,000 ($6,000 if you are age 50 or better) for 2008, it's more important than ever to partner with someone you trust. We offer many investment choices including Traditional and Roth (IRAs) and Education Savings Accounts (ESAs). Our IRA specialists can help you build your solid financial future. What is an IRA? Individual Retirement Accounts (IRAs) are great savings vehicles for retirement. An IRA or ESA is a long-term savings plan that gives you the advantage of compound interest and tax-deferred or tax-free savings.

Which IRA is right for you?

Investing for the future helps make your dreams a reality.  With so many IRAs available, how do you know which will be the most effective in reaching your goals? 

The following information will help you get started. A Bank Mutual IRA specialist can then answer any questions and put an IRA to work for you.

How much can you contribute?

Although there is no minimum contribution to your Traditional or Roth IRA, your annual contributions are limited to $5,000 ($10,000 per married couple), or your total taxable compensation - whichever is less.* If you are age 50 or better, a special $1,000 catch-up provision allows you to contribute even more, up to $6,000 ($12,000 per married couple), or your total taxable compensation - whichever is less.*  Keep in mind that if you have more than one IRA, the combined total cannot exceed the contribution limit. 

*Contribution limits valid through 2008

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Traditional IRAs

Start saving now with a Traditional IRA and your contributions and earnings will grow tax-deferred.  If you qualify, your contributions may be tax-deductible. Withdrawals are required by age 70 1/2, and there are penalties for early withdrawal (before age 59 1/2). There are some exceptions, such as withdrawals used for education expenses or for purchasing your first home. A Bank Mutual IRA specialist can explain the details. Since your IRA earnings are not taxed until they are withdrawn, Traditional IRAs are a good option if you expect to be in a lower tax bracket during retirement.

Roth IRAs

Roth IRA contributions are made with after-tax dollars. By paying taxes on the money you invest now, there are no income taxes on qualified withdrawals from your Roth IRA. Your earnings will grow tax-free, and withdrawals are not required at any time. You can make contributions to your Roth IRA at any age, as long as you have earned income. This makes it a useful estate-planning tool, allowing you to use your funds for your retirement or pass them on to your heirs.

Educational Savings Account

Education is expensive, so it's smart to start saving as soon as possible. An Education Savings Account (ESA) lets you save up to $2,000 per year for any child under the age of 18. (This is in addition to other IRA contributions.)

Once the child turns 18, the money can be withdrawn tax - and penalty - free for qualified higher education expenses. A Bank Mutual IRA specialist can explain the additional features of an ESA.

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FDIC Insured Safety

Your Bank Mutual IRA is insured by the Federal Deposit Insurance Corporation (FDIC), giving you the peace of mind that your money is protected up to $250,000. You will also have the confidence that all of your accounts are backed by more than 115 years of Bank Mutual strength and experience.

Automatic Deposits

To make it even easier to save, you can make automatic contributions to your IRA. Ask your Bank Mutual IRA specialist to set up periodic deposits from your paycheck or your Bank Mutual checking or savings account. You'll never forget to save, and you'll be on the way to reaching your financial goals.

Retirement Fund Transfer Account

If you're changing jobs, retiring or your current retirement plan is ending, there's no need to worry about what will happen to your existing retirement or profit sharing funds. Our IRA specialists can help you set up a Retirement Fund Transfer Account, an IRA rollover account that receives the balance from your current plan.

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