Personal Banking

Individual Retirement Accounts

Retirement planning without the worries

Tax-advantaged savings with an IRA is more attractive than ever. The Economic Growth & Tax Relief Reconciliation Act of 2001 brings new and exciting opportunities for saving more for your future. The new rules allow increased contributions to IRA Plans, and means more tax advantages than ever before. In addition, a recent new rule boosted federal deposit insurance coverage on certain retirement accounts including IRAs to $250,000 making our NJM Bank IRA a safe investment. Plan for your future with the safe, guaranteed return of an IRA from NJM Bank.

NJM Bank offers two greats ways to invest in an IRA - an IRA Certificates of Deposit and an IRA Savings Account. Our Retirement Calculator will show you the amount of money you should save each year, based upon your projected financial needs in retirement.

If you're looking to add to your nest egg periodically, our IRA Savings account provides that flexibility - offering an attractive return without a fixed time commitment. IRA Certificates of Deposit may be utilized for both periodic and lump sum contributions, including Transfers & Rollovers, and generally offer a higher return for a fixed term of deposit.

Several types¹ of Individual Retirement Account Plans are offered through NJM Bank, including both Traditional and Roth IRA's.

A Traditional IRA allows people to accumulate tax-sheltered funds for retirement that are tax-deferred until withdrawn. Individuals who have earned income or receive alimony may contribute to a Traditional IRA until they reach age 70 1/2. If you are not an active participant in an employer-sponsored pension or profit-sharing plan, you can deduct 100% of your Traditional IRA contribution, regardless of income level. However, even if you are a participant in a plan, you still might be able to claim a deduction.

A Roth IRA is different because contributions are not tax-deductible, but all withdrawals, including earnings, are tax-free if the account has been open for at least five years and the account holder is 59½ or older. An individual with a gross adjusted income of up to $114,000 can contribute to a Roth IRA. Couples filing jointly must not exceed $166,000 in gross adjusted income to remain eligible.

Single filer taxpayers, under age 50, may be able to contribute up to $4,000 for 2007 and $5,000 for 2008. For those age 50 and over, up to $5,000 may be contributed in 2007 and $6,000 in 2008. Married individuals, filing jointly, may be able to contribute up to $8,000 combined in 2007, if both are under age 50. Those age 50 or over may be able to contribute up to $10,000 combined in 2007.

Always be sure to check with your accountant or tax advisor for more information on eligibility and deductibility requirements.

1 NJM Bank also offers Educational IRA Accounts. Please contact us or call us for further information.