Start Saving with an IRA

Individual retirement accounts (IRAs) may provide a tax-advantaged way for you to save for retirement, check out the IRA options available through First Minnetonka City Bank.

Traditional and Roth IRAs

Explore the difference between a Traditional IRA and a Roth IRA and decide which one is right for you.

Explore Traditional and Roth IRAs

Traditional IRA

A traditional Individual Retirement Account allows you to save for your retirement and to defer taxes on the earnings of your contributions until they are withdrawn. Certain contributions may be partially or fully tax deductible in the tax year for which they are made, but distributions are generally taxable.*

Learn more about Traditional IRAs

Roth IRA

The Roth Individual Retirement Account allows you to save for your retirement using only nondeductible contributions and features federal income tax free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a traditional IRA.*

Learn more about Roth IRAs

*Eligibility rules apply

SEPs are often established by companies to provide retirement plans for their employees. Every year, the company can contribute a certain percentage of each employee’s eligible pay into his or her individual Traditional IRA. Any company, whether a corporation, partnership or a self-employed individual, may establish a SEP even if there are no other employees.

Every dollar deposited under an eligible SEP plan within the limits listed in the table below qualifies as a tax deduction.

Tax Year	SEP Plan Employer Contributions
2022	The lesser of 25% of the first $305,000 of each eligible employee’s compensation or $61,000
2023	The lesser of 25% of the first $330,000 of each eligible employee’s compensation or $66,000
2024	The lesser of 25% of the first $345,000 of each eligible employee’s compensation or $69,000
Contribution Deadline	Employer’s income tax return filing due date, plus extensions

For detailed information about SEP and employee eligibility, refer to IRS publication 560, Retirement Plans for Small Businesses, found on the IRS website.

As a business owner, you should consult with your tax or legal professional to review IRS eligibility requirements for this plan for your business.

The earlier you start saving for retirement, the more time your money has the potential to grow. It pays to start savings now and to contribute regularly.

Check our great rates for current rates and additional terms and conditions. Interest rates are subject to change.

Transfers, Rollovers, and Conversions

Move your retirement savings without losing tax benefits.