Individual Retirement Accounts

Now is the best time to begin saving for retirement, while you're still earning income. Don't let your dreams fall by the wayside. Set up an IRA and benefit from a tax-advantaged* way to save.

We offer traditional and Roth IRAs, as well as Educational IRAs to spend on higher education. Talk to a First Citizens representative about which plan is right for you.


Summary
  • Tax-advantaged* savings
  • Choose between traditional, Roth, or Educational
  • No setup fees
  • No monthly or annual maintenance fees
  • $5,500 annual contribution limit
  • $1,000 annual "catchup" contribution for ages 50+
  • Minimum $250 deposit to open

See our current rates.

Traditional vs. Roth

Traditional IRA

  • No income limits to open
  • No minimum contribution in any year
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals begin at age 70½

Roth IRA

  • Income limits to be eligible to open Roth IRA
  • Contributions are NOT tax deductible
  • Earnings are 100% tax FREE at withdrawal*
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals on interest can begin at age 59½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

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

**Certain exceptions apply, such as healthcare, purchasing first home, etc.


Educational

An Educational IRA is a savings plan created specifically for higher education. Anyone may make non-deductible contributions to an Education IRA for a child under 18. When college time comes, the funds may be withdrawn, tax-free.*

  • Distributions are tax-free, but must be used at an eligible institution, such as:
  • Any accredited public, private, or religious school that provides elementary or secondary education
  • Accredited college, university, vocational or post-secondary educational institution eligible to participate in a Department of Education approved student aid program
  • Distributions are tax-free as long as they are used for qualified education expenses, including:
  • Tuition and fees
  • Required textbooks
  • Necessary school supplies and equipment
  • Room and board
  • If the distribution exceeds qualified education expenses, a portion will be taxable to the beneficiary and will usually be subject to an additional 10% tax.**

*Consult a tax advisor.

**Exceptions to the additional 10% tax include the death or disability of the beneficiary or if the beneficiary receives a qualified scholarship.

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