Individual Retirement Accounts
It’s not always easy to think about the future – but with our Individual Retirement Accounts (IRAs), a little planning can go a long way toward keeping you and your loved ones happy and secure.
With tax advantages† and FDIC insurance, IRAs enable you to invest for the long-term, saving money for your retirement.
At Merchants Bank, we offer a variety of IRAs – so you can choose the account that best meets your needs.
Our IRAs include:
Traditional IRA
- Personal savings account for retirement
- Must have earned income and be under 70.5 years old for an entire tax year to make contributions
- Interest earned on account is tax free until withdrawn
Roth IRA
- Similar to traditional IRA
- Certain qualified distributions are tax free
- Interest earned is tax free
- Earned income must meet certain parameters
- Can continue to make contributions over age 70.5
Simplified Employee Pension (SEP) IRA
- Allows employers to make contributions toward employees' retirements
- Self-employed individuals can also contribute toward their own retirement
- Good option for small businesses
- Established and maintained by the employer in the employee's name
- No employee contributions allowed
Savings Incentive Match Plan for Employees (SIMPLE) IRA
- Ideal for small businesses
- Established by an employer for the employee
- Both employees and employers make contributions
Coverdell Education Savings Account
- Helps parents and students save for education
- Tax- and penalty-free withdrawals for higher education expenses
- Contributions can be made until your child's 18th birthday
- Relatives can contribute toward the annual limit
†Please seek the guidance of a tax or legal professional for specific advice and information regarding IRA laws and policies.
Contributions subject to eligibility requirements.
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Questions?
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Lots of choices. How do I find out more?
Lots of choices. How do I find out more?
We recommend you stop by your local branch and get the answers you need. Feel free to do some homework first - there are many good online resources.
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What’s the difference between a Roth IRA and a Traditional IRA?
What’s the difference between a Roth IRA and a Traditional IRA?
There are three major differences - the way contributions are deducted, age limits and income limitations.
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What’s the difference between a SEP IRA and a Simple IRA?
What’s the difference between a SEP IRA and a Simple IRA?
Income level is a big difference along with the penalty for withdrawals and who can contribute to the account.
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Do I need to live or work in Vermont to open an account or loan?
Do I need to live or work in Vermont to open an account or loan?
Merchants Bank opens accounts or loans for people living or working in Vermont or communities adjacent to our offices.
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