Midland States Bank and its representatives do not provide tax or legal advice. Each individual's tax and financial situation is unique. Individuals should consult their tax and/or legal advisor for advice and information concerning their particular situation.
A savings account with tiered interest rates that allows you to make deposits any time. The higher your balance, the higher the interest rate.
A time deposit account with a fixed rate of return with terms ranging from 1 week to 5 years. Longer terms tend to offer higher rates.
Features & Benefits
Funds grow tax-free (Roth) or on a deferred basis (Traditional) until retirement.
Savings and CD IRAs are insured up to the maximum allowed coverage.
Savings IRAs and CD Savings IRAs offer a stable alternative to investment IRAs.
Choose to structure your account as a Traditional or Roth IRA.
A traditional IRA offers the potential for tax-deductible contributions and the opportunity for your earnings to grow tax-deferred until they’re withdrawn.
- Anyone under 70 ½ years of age with earned income is eligible to contribute
- Contributions may be tax-deductible
- Earnings grow tax-deferred until withdrawn
- Funds are eligible for withdrawal at or after age 59 ½
- Withdrawn funds are taxed at current tax rate
- Withdrawals made prior to 59 ½ may incur a 10% penalty
- Distribution must begin at age 70 ½
A Roth IRA provides the opportunity for your earnings to grow tax-free.
- Contributions are not tax-deductible
- Contributions (not earnings) can be withdrawn tax free at any time
- Earnings are tax-free if both criteria are met:
- Withdrawn after age 59 ½
- Account has been open five years or more
- Income based contribution restrictions may apply