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It’s never too early or too late to prepare for your future.

An individual retirement account (IRA) is an account that helps you save money for retirement. Opening an individual retirement account at one of our Massachusetts locations offers savings benefits such as:

  • Competitive interest
  • Possible tax advantages1

1Consult a tax adviser.

Key Features

  • Competitive Interest
  • Tax Advantages1

Unlike a 401(K), an IRA is typically an account an individual may open on their own. IRAs allow you to make tax-deferred investments to provide financial security when you retire.

There are many different types of IRAs available with varying rules and regulations. The type of IRA account you can open will depend on your current income, age and if you have a preexisting retirement plan at your workplace. Potential penalties are another important factor of IRA accounts. Since their intended purpose is to provide savings for retirement, you may face a penalty2 if you withdraw money before a certain age.

Before opening an individual retirement account at one of our Massachusetts locations, keep in mind the following details and requirements:

  • Tax-advantaged retirement savings1
  • Competitive interest 
  • Traditional and Roth IRA options
  • Statement Savings IRA account also available
  • $10 annual fee waived for Preferred Checking account holders
  • $6,000 contribution limit per year for those under 50 years of age; those 50 years or older may be eligible for a 'catch-up' $1,000 which would put the contribution limit at $7,000
  • Funds can be used to purchase CDs or fund savings accounts within an IRA; Individual Retirement Accounts (IRA) CD's available for terms 12 – 60 months
  • $500 minimum deposit to open

Clinton Savings Bank understands the importance of saving for retirement. We offer both Traditional and Roth IRAs along with an education savings account. For more information on which account is right for you, contact us today!

1Consult a tax adviser.

2Certain exceptions apply, such as healthcare, purchasing first home, etc.

Whether you open a traditional IRA account or a Roth IRA account with Clinton Savings Bank in Massachusetts, it's important to know the differences and benefits of each account.

Before you open your account, ask yourself when you want to enjoy your tax advantage. A traditional IRA can provide tax relief today, while a Roth IRA has the potential for the most tax benefit at the time of retirement.

With a traditional IRA, you will essentially pay taxes when you withdraw the money from your account during your retirement. With a Roth IRA, the process reverses —  you will pay taxes on the money you contribute to your account, while the money you withdraw during retirement is not taxed. With both types of IRA accounts, your money increases without tax deductions while in the account. If you need to withdraw money early, a Roth IRA allows for greater flexibility, whereas you may face a penalty if you withdraw from a traditional IRA.

Other differences between these IRA accounts include:

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax1
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty2
  • Mandatory withdrawals at age 72

Roth IRA

  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal1
  • Withdraw principal contributions without penalty1
  • Withdrawals on interest can begin at age 59½ 
  • Early withdrawals on interest subject to penalty2
  • Income limits to be eligible to open Roth IRA3
  • No mandatory distribution ages
  • No age limit on making contributions as long as you have earned income

1Subject to some minimal conditions. Consult a tax advisor.

2Certain exceptions apply, such as healthcare, purchasing first home, etc.

3Consult a tax advisor.


Contact Clinton Savings Bank today at 888-744-4272 to learn which IRA accounts you can open in one of our many Massachusetts locations.