Personal Services
Individual Retirement Accounts
Start planning today for the lifestyle you deserve tomorrow.
Ensure your future financial independence with an Individual Retirement Account from The Provident Bank.
This page is designed to answer some of your questions about the different types of Individual Retirement Accounts and investment options available for your IRA at The Provident Bank. Of course, you should consult your own tax or legal advisor for answers to specific questions about your tax status, income requirements, and future financial goals.
Traditional IRA
Are you under age 70 & 1/2, with earned income? If so, your contributions to a Traditional IRA may be tax-deductible, depending on participation in an employer-sponsored retirement plan and income level. (Consult your tax advisor or reference Publication 590 at www.IRS.gov to see if you qualify.)
Potential earnings are tax-deferred until you make withdrawals from the account. You can begin withdrawing funds from your IRA without the 10% IRS premature-distribution penalty any time after you reach age 59 & 1/2. You must begin to take your minimum required distributions when you reach age 70 & 1/2. Withdrawals of tax-deductible contributions and earnings are taxed at current income tax rates.
IMPORTANT CHANGES EFFECTIVE 2008
Increased Contribution and Deduction Limit. Generally, the most that can be contributed to your Traditional IRA is the smaller of the following amounts:
- Your taxable compensation that you must include in income for the year, or
- $5,000
If you are 50 years of age or older in 2008, the most that can be contributed to your Traditional IRA is the smaller of the following amounts: Your taxable compensation that you must include in income for the year, or • $6,000 (up from $5,000).
- Your taxable compensation that you must include in income for the year, or
- $6,000 (up from $5,000).
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Roth IRA
Don’t qualify for a Traditional IRA or looking for different tax advantages? Regardless of your age, you may be able to establish and make non-deductible contributions to a Roth IRA if you meet certain Adjusted Gross Income limits. (Consult your tax advisor or reference Publication 590 at www.IRS.gov to see if you qualify.)
Unlike a Traditional IRA, you do not report Roth IRA contributions on your tax return. However, this type of account offers a potentially greater tax advantage: when you begin withdrawing funds at retirement, earnings on the account are tax-free. In addition, contributions can be made to your Roth IRA after you reach age 70 & 1/2, and there are no mandatory withdrawals at any age.
IMPORTANT CHANGES EFFECTIVE 2008
Increased Contribution Limit. If contributions on your behalf are made only to Roth IRAs, your contribution limit is generally the lesser of:
- $5,000, or
- Your taxable compensation.
If you are 50 years of age or older in 2008 and contributions on your behalf are made only to Roth IRAs, your contribution limit is generally the lesser of:
- $6,000 (up from $5,000), or
- Your taxable compensation.
However, if your modified Adjusted Gross Income is above a certain amount, your contribution limit may be reduced. Please consult your tax advisor for details.
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Rollover IRA
Are you changing jobs or retiring? Avoid immediate taxes and penalties with a Provident Rollover IRA.
A Rollover IRA allows you to directly transfer all or part of your pension or retirement funds from one eligible plan to another. At The Provident Bank, we make it easy to roll over your current retirement account to one of our Hassle-free IRA Solutions. Simply stop by any branch and speak with a Wealth Management advisor.
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IRA Investment Solutions
Consider these FDIC-insured IRA Solutions for your 2007 contribution.
After deciding which IRA is best for you, the next step is to choose an investment product. At The Provident Bank, a variety of FDIC-insured deposit accounts are available for your IRA funds. Choose the liquidity of a Provident IRA Statement Savings or lock in a competitive interest rate for 6 months to 10 years with an IRA Certificate of Deposit.
Here's a quick look at the features and benefits of our FDIC-Insured IRA options:
NOTE: Please refer to our Personal Accounts and Service Fees Brochure for further details.
Other IRA options through Provident Investment Services, Inc.*
If you are interested in funding your IRA with non-federally insured securities or mutual funds but are unsure about how or when to invest in the market, our experienced financial advisors and administrators at Provident Investment Services, Inc. can help.* The Provident Bank has partnered with PrimeVest Financial Services, Inc.* to offer a full range of discount and online brokerage services. For more information, contact an investment advisor at 1-800-654-9454.
*Provident Investment Services Inc. is a wholly owned subsidiary of The Provident Bank. A marketing agreement with PrimeVest Financial Services Inc. as the Broker Dealer and Member of the NASD, SEC and MSRB allows a Provident Investment Services/ PrimeVest Financial Services Representative to make available a wide variety of Products and Services. All security products are offered through PrimeVest Financial Services Inc., a registered broker/dealer not affiliated with this financial institution. PrimeVest is a member of the NASD, SIPC, MSRB. Products offered by PrimeVest Financial Services are NOT FDIC INSURED, NOT GUARANTEED BY THE BANK, AND MAY LOSE VALUE.
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A Great Idea for 2008:
Maximize IRA earnings with "dollar cost averaging"
One of the simplest ways to take the guesswork out of investing is to use a strategy called "dollar cost averaging." This involves making equal dollar purchases of a mutual fund on a regular basis. By investing a set amount periodically, you will buy fewer shares when prices are high and more shares when prices are low. The net result is that your average cost ends up being below the average price for the investment period. Dollar cost averaging also gets you in the habit of investing regularly the most important step toward ensuring a comfortable retirement.
No matter which type of investment you choose, an easy way to make sure you’re saving enough for retirement is to set up regular electronic transfers of a pre-determined amount of money from your Provident checking or savings account to your IRA. Unlike many banks and investment firms, there is NO FEE for Auto-Debit service at The Provident Bank.
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Make The Provident Bank Your Retirement Planning Headquarters
Its easy to open, fund, or roll over an Individual Retirement Account at The Provident Bank. Just visit any branch, fill out an application, designate a beneficiary, and make your deposit. If you are unsure of which type of IRA or investment product is most appropriate for you, one of our Wealth Management advisors will be happy to help.
More questions about Provident IRAs?
Just call 1-800-448-PROV (1-800-448-7768) to reach a representative for more information.
Early withdrawals from an IRA prior to age 59 & 1/2 may result in a federal penalty. Interest penalties apply for early withdrawal. Refer to our Accounts and Services Fee brochure or ask a representative for details.
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