Our IRA Options
OPEN AN IRA ASK A QUESTION SCHEDULE APPOINTMENT
What would your Retirement Look Like?
Choose a term that's right for you:
| Product | Minimum to Open | Current Interest Rate | Current APY* | Open an IRA |
|---|---|---|---|---|
| Retirement Flex 10 Month CD1 | $100 | 0.49% | 0.50% | OPEN AN IRA |
| Retirement Flex 20 Month CD1 | $100 | 0.54% | 0.55% | OPEN AN IRA |
| Retirement Flex 30 Month CD1 | $100 | 0.64% | 0.65% | OPEN AN IRA |
Savings for where you are now and for where you're headed.
Benefits of a Retirement Flex CD:
Open with as little as $100
Make additional contributions of $20 or more anytime
Great fixed rate
Perfect for rollovers and transfers
Contributions permitted up to legal limits2
Potential tax advantages2
A flexible account for today, tomorrow, and in retirement.
Deposits to an existing IRA account will be reported by the Bank for the year in which the deposit was received by the Bank. In order for a deposit to an existing IRA account to be reported for the prior calendar year, the deposit must be made in person and received by the Bank prior to the applicable IRS deadline. *Annual Percentage Yield | 1. The balance of funds in your account will automatically renew on the maturity date into a Retirement Flex CD with the same term as this Account. If such term is unavailable, your account will, at the Bank’s discretion be renewed for either the nearest shorter term or nearest longer term account with a fixed rate at the then current interest rate offered by the Bank for that term. You may prevent renewal if you withdraw the funds in the account at maturity or we receive written notice from you within the grace period mentioned below. We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. If either you or we prevent renewal, interest will not accrue after final maturity. Unless the Bank has otherwise advised you in writing, your account will be automatically renewed as described above.| 2. Please consult your tax advisor. | Early withdrawal penalties apply to Retirement Flex CD accounts. Each Retirement Flex CD may only be opened as part of an Individual Retirement Account relationship. Rates and terms are accurate as of 6/1/2021 and are subject to change without notice. Fees could reduce earnings. Retirement accounts held by a person at Ridgewood Savings Bank are generally insured by the FDIC up to a total of $250,000. Additional terms and conditions apply.
- TRADITIONAL IRA
- ROTH IRA
- SEP IRA
TRADITIONAL IRA
A Traditional IRA is a convenient, straightforward way to save for retirement. With this popular plan, your contributions may be tax deductible and all earnings are tax-deferred until your funds are disbursed1.
Eligibility
- There are no age restrictions.
- Must have earned income.
- Tax deductibility is based on income requirements.
Contribution Limits
The total contribution limits for both Traditional and Roth IRAs are:
- 2021: $6,000 2022: $6,000 (Under age 50)
- 2021: $7,000 2022: $7,000 (Age 50 or older)
Catch-up contributions are also available for the IRA of a non-working spouse.
Rollovers
If you retire or change jobs, you can roll over the funds in a qualified employer-sponsored retirement plan, such as a 401(k) or 403(b), to a Traditional IRA at Ridgewood. If you receive your funds in a lump-sum distribution, you must move the funds to your new IRA within 60 days to avoid any IRS penalty or to preserve the tax-deferred status of your assets1. Rollovers of IRA distributions are limited to one per 12-month period.
Transfers
If you have an existing IRA at another financial institution, you can take advantage of our competitive IRA CD rates and local service by easily transferring your IRA to Ridgewood.
To learn more, call our retirement specialists today at (877) 417-6547.
1Please consult your tax advisor.
ROTH IRA
Roth IRA contributions are not tax-deductible, but earnings accumulate tax-free. And, because your contributions are taxed up front, you will be able to withdraw both your principal and interest tax-free (when qualifications are met).1
Eligibility - 2021
- There are no age restrictions.
- Participants must have earned income.
- For the 2021 tax year, Roth IRAs require an adjusted gross income below $208,000 (for couples filing jointly), with reduced contribution limits beginning at $198,000. For single filers, the contribution limit is $140,000, with contributions phased out starting at $125,000.
Eligibility - 2022
- There are no age restrictions.
- Participants must have earned income.
- For the 2022 tax year, Roth IRAs require an adjusted gross income below $214,000 (for couples filing jointly), with reduced contribution limits beginning at $204,000. For single filers, the contribution limit is $144,000, with contributions phased out starting at $129,000.
Qualified Distributions
To qualify for tax-free distributions, the Roth IRA must have been open for five years and the account holder must be at least 59½1. The age requirement does not apply in the event of disability or death, or if the funds are used for qualifying homebuying or higher education expenses.
Contribution Limits
The total contribution limits for Traditional and Roth IRAs are:
- 2021: $6,000
- 2022: $6,000
Plus, individuals age 50 or older may make additional contributions up to $1,000 per tax year. These catch-up contributions are also available for the IRA of a non-working spouse.
Traditional to Roth IRA Conversions
If you would like to take advantage of tax-free distributions in the future, our team can help you convert your tax-deferred Traditional IRA to a Roth IRA.
To learn more, call our retirement specialists today at (877) 417-6547.
1Please consult your tax advisor.
SEP IRA
Simplified Employee Pension plans, or SEP IRAs, are qualified retirement plans designed to help self-employed individuals, small-business owners and employees access valuable tax benefits1 while saving for retirement.
The SEP plan is one of the more popular Qualified Plans because it combines the simplicity of an IRA with the added benefits of a Qualified Plan. A SEP is designed to permit an employer to contribute to employees’ IRAs and gives participants access to all the investment options of an IRA.
Eligibility
- SEP IRAs may be used by sole proprietors, partnerships and corporations.
Contribution Limits
For the 2021 tax year, employers may contribute up to 25% of annual compensation or $58,000 (whichever is lower) per employee.
For the 2022 tax year, employers may contribute up to 25% of annual compensation or $61,000 (whichever is lower) per employee
Tax Advantages
Employer contributions may be excluded from the employee’s current taxable income, and the employer may deduct the contributions as a business expense.1
To learn more, call our retirement specialists today at (877) 417-6547.
1Please consult your tax advisor.
Our IRA Accounts
- IRA CD
- IRA Super Saver
We believe that saving is key to success, so we give you a smart, safe way to grow your nest egg. Ridgewood offers a wide selection of FDIC-insured IRA CDs that can add stability to your retirement portfolio while paying a highly competitive rate.
| Product | Minimum to Open | Current Interest Rate | Current APY* | Open an IRA |
|---|---|---|---|---|
| 90 Day CD | $100 | 0.30% | 0.30% | OPEN AN IRA |
| 6 Month CD | $100 | 0.34% | 0.35% | OPEN AN IRA |
| 9 Month CD | $100 | 0.39% | 0.40% | OPEN AN IRA |
| 12 Month CD | $100 | 0.44% | 0.45% | OPEN AN IRA |
| 18 Month CD | $100 | 0.49% | 0.50% | OPEN AN IRA |
| 24 Month CD | $100 | 0.54% | 0.55% | OPEN AN IRA |
| 36 Month CD | $100 | 0.59% | 0.60% | OPEN AN IRA |
| 48 Month CD | $100 | 0.64% | 0.65% | OPEN AN IRA |
| 60 Month CD | $100 | 0.69% | 0.70% | OPEN AN IRA |
| 72 Month CD | $100 | 0.74% | 0.75% | OPEN AN IRA |
| 84 Month CD | $100 | 0.79% | 0.80% | OPEN AN IRA |
If you have any questions, call our retirement specialists at (877) 417-6547.
Rates are effective as of 12/31/2021
*A Ridgewood checking, money market or savings account required.
Fees charged on some accounts may reduce your earnings.
Early withdrawal penalties apply on CD accounts.
Each IRA certificate of deposit may only be opened as part of an individual Retirements Account relationship.
Rates & terms are subject to change without notice.
The information on this page is provided for informational purposes only. Ridgewood Savings Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the information. Please consult a qualified advisor for advice specific to your circumstances.
We believe that saving is key to success, so we give you a smart, safe way to grow your nest egg.
| Product | Minimum to Open | Interest Rate | APY* | Open an IRA |
|---|---|---|---|---|
| IRA Super Saver | $10 | 0.34% | 0.35% | OPEN AN IRA |
If you have any questions, call our retirement specialists at (877) 417-6547.
FIND YOUR NEAREST BRANCH ASK A QUESTION SCHEDULE APPOINTMENT
Rates are effective as of 12/31/2021
*Current APY
Fees charged on some accounts may reduce your earnings.
Rates & terms are subject to change without notice.
The information on this page is provided for informational purposes only. Ridgewood Savings Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the information. Please consult a qualified advisor for advice specific to your circumstances.
OUR OTHER OPTIONS
- Coverdell Education Savings Account
- Qualified Plans
COVERDELL EDUCATION SAVINGS ACCOUNT
A Coverdell ESA is a simple way for parents, grandparents and others to save for a child’s education. Similar to a Roth IRA, this nondeductible account offers tax-free earnings and withdrawals for qualified K-12 and higher education expenses1.
Eligibility
-
Beneficiaries must be under the age of 18.
- Anyone may set up or contribute to a child’s Coverdell ESA (income limits apply).
Contribution Limit
The total annual contribution limit is $2,000 per child.
Eligible Expenses
Money put aside grows tax-free and can be withdrawn tax-free when the proceeds are used for qualified expenses at an eligible educational institution such as a college, trade school, private elementary school or private high school1. Qualifying distributions must be made by age 30.
Savings Options
Ridgewood’s CDs are a simple and effective way to protect and grow your Coverdell ESA funds. We offer a full range of terms with great rates, so you can choose the option that best fits your plans.
To learn more, call our retirement specialists today at (877) 417-6547.
1Please consult your tax advisor.
Qualified Plans
Qualified Plans, including IRAs and profit-sharing plans, are tax-deferred retirement plans established or adopted by employers for themselves and their employees. With favorable tax treatment1 and a variety of options, these IRS-approved plans are commonly used by sole proprietors, partnerships and corporations.
If you are a business owner, a Qualified Plan could be a smart choice for you and your valued team members.
To learn more and discuss your retirement needs, call our retirement specialists today at (877) 417-6547.
1Please consult your tax advisor.
Our tools and resources
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