Retirement & IRAs
Washington Trust offers both traditional and Roth IRA options. Created to encourage individuals to save for and manage their retirement, IRAs have the benefit of an interest-bearing investment, with the added bonus of potential tax deductibility, deferment, or even tax-free earnings.
Compare IRAs
| Traditional IRA | Roth IRA | |
|---|---|---|
| Who can contribute? | Anyone with earned income | Depends on modified adjusted gross income (MAGI) |
| How much can be contributed a year? | 100% of earned income up to a maximum of that year's standard contribution limits | May contribute the lesser of that year's standard contribution limit or 100% of earned income, subject to Modified Adjusted Gross Income (MAGI) limits |
| How does the account grow? | Tax-deferred until withdrawn | Tax-free when distribution guidelines are met |
| Are the contributions deductible?1 | All or part of the contribution is – if you qualify | Contributions are never deductible |
| When is federal income tax due?1 | Due upon withdrawal of earnings and deductible contributions | No federal income tax when distribution guidelines are met |
| How long can contributions be made? | As long as income is earned | As long as income is earned |
| When does the IRA need to be distributed by? | Mandatory distributions start at age 73 | Does not have a mandatory distribution age |
1 Seek the advice of a qualified tax accountant or refer to IRS Publication 590 for details concerning deductibility.
Contribution limits are subject to Cost-of-Living (COLA) adjustments. Additionally, if you have attained age 50 or older by the end of your taxable year, you are eligible to make catch-up contributions.
Your selection depends on a few factors – including age, income and whether you’re investing in an employer plan. Get started saving for retirement now – no matter what stage of life you are in.
Withdrawals may be subject to a certificate of deposit early withdrawal penalty if taken outside of the grace period. Please see Deposit Account Disclosure – Personal Products or the Deposit Account Disclosure – Business Products for full terms and conditions.
For further details on earned income limits and distribution guidelines, see IRS Publication 590.
Fixed-Rate IRA CD
Take advantage of tax benefits, with a fixed rate.
Details
| Term | 6 months to 5 years |
|---|---|
| Minimum deposit to open | $500 |
| Interest rate | Rate fixed for full term. Compounds daily. |
| Special features | Additional deposits allowed only at renewal. |
Floating-Rate IRA CD
Details
| Term | 18 months |
|---|---|
| Minimum deposit to open | $100 |
| Interest rate | The interest rate and annual percentage yield can change. Compounds daily. |
| Special features | Additional deposits of $50 or more may be made to this account at any time. |
