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Individual Retirement Accounts (IRAs)

The list of everything you want to do in retirement is pretty long. Saving enough money to enjoy every moment? It's pretty easy with a tax-advantaged1 Traditional or Roth IRA. We partner with you to navigate this part of the retirement planning process. 


Start your golden years with as much retirement savings as possible.

 
Whether you're 25, 35, or 55, the best time to open a Citizens Independent Bank IRA is right now. The more years you contribute to the account, the more money you'll have for visiting old friends, pursuing new hobbies, spoiling the grandkids, traveling the world and all the other things you dream of doing. Take advantage of our competitive IRA rates to grow your retirement nest egg and live the retirement you envision.
 
At CIB, we work closely with neighbors in the Minneapolis-Twin Cities area to help them unlock the power of IRAs and save for the retirements they want to enjoy.

Benefits

  • Only a $500 deposit is required to open an account
  • Contribute up to $7,500 annually ($8,600 if you're age 50 or over)
  • IRA accounts feature higher interest earnings than regular savings accounts
  • Your IRA funds are invested in Certificates of Deposit
  • No setup fees
  • No monthly or annual maintenance fees







































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There are tax benefits to both Traditional and Roth IRAs. A Traditional IRA can provide potential tax advantages and deductions each year you make a contribution, while a Roth IRA offers much of its tax relief when you retire.
 
Traditional IRA
  • No income limits to open
  • No minimum contribution requirement
  • Annual contributions may be tax-deductible on state and federal income tax1
  • Annual interest earnings are tax-deferred until withdrawal
  • Penalty-free withdrawals can begin at age 59½
  • Early withdrawals subject to penalty2
  • Mandatory withdrawals at age 723
 
Roth IRA
  • Some people with higher incomes may be eligible to open Roth IRA4
  • Annual contributions are NOT tax-deductible
  • Annual interest earnings are 100% tax-exempt1
  • All qualified withdrawals are tax-free
  • Principal contributions can be withdrawn any time without penalty1
  • Withdrawals on interest can begin at age 59½
  • Early withdrawals on interest subject to penalty2
  • No mandatory distribution age

  • No age limit on making contributions as long as you have earned income

 

1Subject to some minimal conditions. Consult a tax advisor.

2Certain exceptions apply, such as health care, purchasing first home, etc.

3If you reached the age of 70½ in 2019 the prior rule applies, and you must take your first RMD by April 1, 2020. If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72.

4Consult a tax advisor.

Because they offer many similar tax benefits, Coverdell accounts are often called Education IRAs. Funds may be used for private elementary and secondary education as well as for college costs.
  • $2,000 maximum annual contribution per child
  • No setup or annual fee
  • Dividends grow tax-free
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses
  • Qualified expenses include tuition and fees, room and board, books and 
  • Designated beneficiary must be under 18 when contributions are made
  • To contribute to an ESA, certain income limits apply*
  • Contributions are not tax-deductible
  • The money must be withdrawn by the time the student turns 30**
  • Account funds may be transferred without penalty to another family member
 
*Consult your tax advisor to determine your contribution limit.
**Those earnings are subject to income tax and a 10% penalty.








1Consult a tax advisor.













    We provide personal banking, business banking, mortgage lending, and financial services to businesses and individuals across the western Twin Cities. Explore our local banking locations in Saint Louis Park, Robbinsdale, Hopkins, and Plymouth to find the branch most convenient for you.
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