CDs and IRAs
It's never too early to start planning for retirement. We think of it as saving up for a great vacation – a vacation that lasts the rest of your life. IRAs – Individual Retirement Accounts – are a great way to start saving and investing for your retirement because of the tax advantages they offer. And at Burke & Herbert Bank, we're all about saving and planning for the future, which is why we offer both Traditional and Roth IRAs, and a variety of plans, including CDs, to get you set for retirement.
IRAs in a Nutshell
Traditional IRAs offer the advantage of immediate tax-deductible contributions. Your money grows tax-deferred, and is taxed as income only when you start withdrawing from your account. Additionally, you can roll over assets from 401(k)s or other pre-tax employer-sponsored plans.
With a Traditional IRA, you are required to take a minimum distribution at age 70 and a-half (70 1/2), and you can no longer contribute to your account.
Roth IRAs offer the advantage of tax-free withdrawals at retirement. In contrast to Traditional IRAs, Roth IRAs grow using after-tax contributions, meaning your contributions are not tax-deductible. In essence, pay income tax now, don't pay when you're eligible to make withdrawals. This makes more money available to you in retirement.
With a Roth IRA, your contributions are not tax-deductible, meaning more money out-of-pocket in the short-term, and the eligibility to contribute is limited by income.
There's a reason you've been responsibly squirreling away your hard-earned money. One day – be it next month, next year, next decade, etc. – you'll want to stop working and enjoy the fruits of your life's labor.
With a variety of retirement account options, and the expert assistance of our investment specialists, we can help you plan for retirement and meet your retirement savings goals. As we've said before, our goal is for your money to outlive you, not the other way around.
To speak with an Investment Specialist today, visit your local Burke & Herbert Bank branch or call us at 703-684-1655.
Please consult with a Tax Advisor for information on the tax benefits of IRAs. Burke & Herbert Bank does not and cannot offer tax advice.
Trust products and services are not deposits, are not insured by the FDIC or any other government agency, are not guaranteed by the Bank and may lose value.