Retirement & IRAs
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.
|Traditional IRA||Roth IRA|
|Who can contribute?||Anyone with earned income||Depends on modified adjusted gross income (MAGI)|
|How much can be contributed a year?||100% of earned income up to a maximum of that year's standard contribution limits||May contribute the lesser of that year's standard contribution limit or 100% of earned income, subject to Modified Adjusted Gross Income (MAGI) limits|
|How does the account grow?||Tax-deferred until withdrawn||Tax-free when distribution guidelines are met|
|Are the contributions deductible?1||All or part of the contribution is – if you qualify||Contributions are never deductible|
|When is federal income tax due?1||Due upon withdrawal of earnings and deductible contributions||No federal income tax when distribution guidelines are met|
|How long can contributions be made?||As long as income is earned||As long as income is earned|
|When does the IRA need to be distributed by?||Mandatory distributions start at age 72||Does not have a mandatory distribution age|
1 Seek the advice of a qualified tax accountant or refer to IRS Publication 590 for details concerning deductibility.
Contribution limits are subject to Cost-of-Living (COLA) adjustments. Additionally, if you have attained age 50 or older by the end of your taxable year, you are eligible to make catch-up contributions.
Your selection depends on a few factors – including 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.
Withdrawals may be subject to a certificate of deposit early withdrawal penalty if taken outside of the grace period. Please see Deposit Account Disclosure – Personal Products or the Deposit Account Disclosure – Business Products for full terms and conditions.
For further details on earned income limits and distribution guidelines, see IRS Publication 590.
Fixed-Rate IRA CD
Take advantage of tax benefits, with a fixed rate.
|Term||6 months to 5 years|
|Minimum deposit to open||$500|
|Interest rate||Rate fixed for full term. Compounds daily.|
|Special features||Additional deposits allowed only at renewal.|
Variable-Rate IRA CD
|Minimum deposit to open||$100|
|Interest rate||The interest rate and annual percentage yield can change. Compounds daily.|
|Special features||Additional deposits of $50 or more may be made to this account at any time.|