Retirement & IRAs

Promotional Offer

Earn a promotional relationship interest rate1 on a CD or IRA when you open any consumer checking account at Washington Trust Bank. Earn 2.20% APY2 for an 18 month CD or 2.00% APY for a 12 month CD.

Washington Trust offers both traditional and Roth IRA options. Created to encourage individuals to save for and manage their retirement, IRAs have the benefit of an interest-bearing investment, with the added bonus of potential tax deductibility, deferment, or even tax-free earnings. Stop in to any branch or call our financial planning experts at 800.788.4578 to determine the IRA account that’s best for you.

What is an IRA?

Individual Retirement Accounts (IRAs) were created by the federal government to encourage individuals to save money for retirement. IRAs also provide the added benefit of an interest-bearing investment with the potential for tax deductibility, special tax-deferred benefits, or tax-free earnings.

Here are some of the savings tools Washington Trust Bank offers to help develop a more sound retirement plan.


Who can contribute?

Anyone with earned income

Depends on modified adjusted gross income (MAGI)

How much can be contributed a year?

Under age 50: Up to $5,500
Over age 50: Up to $6,500

Under age 50: Up to $5,500
Over age 50: Up to $6,500

How does the account grow?

Tax-deferred growth

Tax-free earnings

When can withdrawals begin without penalties?

When owner is 59 1/2 years old

Once a five-year holding period has been met along with other guidelines

Are the contributions deductible?

All or part of the contribution is—if you qualify

Contributions are never deductible

When is federal income tax due?

Due upon withdrawal of earnings and deductible contributions

No federal income tax

How long can contributions be made?

Up to age 70 1/2

As long as income is earned—even after age 70 1/2

When does the IRA need to be distributed by?

By age 70 1/2

Does not have a mandatory distribution age

*Beginning in 2009, the contribution limits are subject to Cost-of-Living (COLA) adjustments. Additionally, if you have attained age 50 1/2 or older by the end of your taxable year, you are eligible to make catch-up contributions.

Your selection depends on a few factors—for example: age, income and whether you're investing in an employer plan. Get started saving for retirement now—no matter what stage of life you are in.

1 *To qualify for the promotional relationship CD/IRA interest rate, you must have an active WTB consumer checking account. Relationship CD/IRA interest rates are available on the 18 Month CD at 2.18% Interest Rate 2.20% APY, or on the 12 Month CD at 1.98% Interest Rate, 2.00% APY. CD/IRAs without a checking account will receive the standard interest rate and APY, see current rate sheet at any WTB branch. Minumum deposit to open a fixed rate CD is $500, maximum deposit is $250,000. Minumum deposit to open a checking account is $50.
2 The Annual Percentage Yield (APY) stated is available beginning April 17, 2018 and can change at any time. The APY is based on monthly compounding of interest. Early withdrawal penalties may apply to withdrawals made at any time other than during the grace period. Penalties or fees may reduce earnings on an account.