It's never too early to start planning. The decisions you make now will greatly influence your life in the years to come.
At Westfield Bank, we can help you find the retirement plan that's right for you. We offer Traditional IRAs, Roth IRAs, Simplified Employee Pension Plans (SEPs), and Coverdell Education Savings Accounts. Determining which plan is right for you depends on several factors, including your age and personal goals.
IMPORTANT: There have been significant changes to IRA Rules and Regulations in 2020 due to the Secure Act.
- Age limit eliminated for Traditional IRA Contributions
- RMD raised to age 73, starting in 2023 from age 72, due to the passage of the Secure Act 2.0 in December 2022
- New exception to the 10% penalty for birth or adoption
- IRA contributions with fellowship and stipend payments
- The elimination of a “Stretch” IRA (with certain exceptions) for non-spouse beneficiaries of Inherited IRAs
- Due to the passage of the Secure Act 2.0 in December 2022, the excess accumulation penalty for a missed RMD is reduced from 50% to 25% starting in 2023
Looking for an independent retirement savings vehicle with immediate tax advantages, possible tax deductions and a high degree of flexibility?
A Roth IRA lets you set aside after-tax income up to a specified amount each year, with tax-free account earnings and tax-free withdrawals after age 59 1/2 if certain IRS provisions are met.
Simplified Employee Pension (SEP)
A Simplified Employee Pension (SEP) plan is an easy, low-cost retirement plan that allows employers to contribute to employees' Traditional IRAs. SEP plan contributions provide a tax deduction to the business owner, who can contribute up to 25% of net earnings in a plan year.
Coverdell Education Savings Account
When you're planning to finance a student's education, this account provides an additional way to help you reach your goal. The Coverdell ESA provides tax-deferred interest if certain IRS provisions are met.
Retirement Certificates of Deposit are a safe and secure way to save. You'll earn a fixed interest rate over the course of the term. All CDs have a minimum balance requirement to open.