Retirement Accounts

Do you want to work till you’re 95?

Individual Retirement Accounts (IRAs)

Individual Retirement Accounts

An Individual Retirement Account (IRA) may be your solution!

What is an IRA?

IRAs are your very own personal tax advantage savings vehicle for Retirement. That allows us to help you make your hard earn dollar work even harder for you, with the most competitive interest rate out there.

Trustco Retirement Program offers:

  • No Enrollment Fee
  • No Prior Relationship requirements
  • No Monthly Fee
  • No Annual Fee
  • No Administration fee
  • Lowest opening Deposit of
  • $250 for IRA CD
  • $50.00 for IRA Money Market
  • $0.00 for an IRA Club Account
  • FDIC insured

Traditional IRA

A Traditional IRA is an individual retirement account that:

  1. May provide tax benefits because contributions may be tax deductible.
  2. Investment earnings can also grow tax-deferred until withdrawn, typically at retirement. 
  3. You may contribute up to $5,500 of earned income ($6,500 if you are age 50 or older) until you are 70½ years old. At this time, you must begin taking an annual Required Minimum Distribution (RMD).
  4. Withdrawals are penalty-free and taxed as ordinary income when taken after age 59½.

If you are in a higher tax bracket today than you will be during retirement, a Traditional IRA may be a smart choice.

Roth IRA

A Roth IRA is an individual retirement account that offers:

  1. The opportunity for tax-free income in retirement.
  2. Annual contributions are taxed upfront
  3. You may contribute up to $5,500 of earned income ($6,500 if you are age 50 or older)
  4. Earnings are federal tax-free when they are distributed according to IRS rules. This is much different than a Traditional IRA, which taxes withdrawals.
  5. Contributions can be withdrawn at any time
  6. There are no required minimum distributions after age 70½. 
  7. Contributions may be made after age 70 ½. As long as you have earned income.

If you are in a lower tax bracket today than you will be during retirement, a Roth IRA may be a smart choice.

You can Fund your IRA Account with:

  1. Regular Contributions: An IRA Contribution bases on the compensation (including earned income) of the IRA owner.
  2. Prior Year Contributions: If you did not maximize your regular contribution in the prior year, the IRS allows you to make a contribution in the current year and apply it to the prior year, providing you make the contribution by the tax deadline, normally April 15th.
  3. Rollover Contributions: An IRS reportable movement of accumulated retirement funds either between like IRAs or Qualified Retirement Plans to an IRA.
  4. Trustee Transfers Contribution: A non-reportable movement of accumulated IRA funds between Financial Institutions between like IRAs only.

Retirement SavingsTrustco Bank offers you a wide range of investment options with flexible terms of 6 months to 10 years.

  1. IRA Certificate of Deposits - Click Here to view rates and terms
  2. IRA Money Market Accounts - Click Here to view rates and earnings
  3. IRA Club Account – Rate (0.50% Annual Percentage Yield for an account balance under $5000.00 then MM rates Apply

Remember: With a Trustco Bank IRA Account, your principle will never depreciate. Your Retirement funds will be safe!

* Check with a qualified tax advisor or the IRS for contribution limits and your eligibility to contribute.

Please Note: We reserve the right to alter or withdraw these products or certain features thereof without prior notification. Consult your tax advisor concerning the tax consequences and benefits of these products.

Retirement Plans For Businesses

Retirement Plans For BusinessesReward you and your employees with a plan to provide retirement benefits. SEP and SIMPLE IRA plans are easy to set up and administer.

Simplified Employment Pension (SEP)

A Trustco SEP is a tax-deductible retirement fund for businesses that provides tax deferred benefits for employers and employees. Employers may contribute up to the lesser of the contribution amount determined by the IRS or 25% of compensation for each eligible employee. The compensation limit is determined by the IRS. Talk to your Trustco banker about this innovative program for your business.

Savings Incentive Match Plans For Employees (SIMPLE)

A Trustco Bank SIMPLE is an inexpensive retirement plan that a small business owner may set up, even if the business has no employees other than the owner. Employers must make contributions for eligible employees based on a matching or non-elective contribution formula.

  • Employees may elect to defer up to 100% of their compensation, but no more than a certain dollar amount per year based on age.*
  • Annual reporting to the IRS is not required from employers of SIMPLE IRA plans.
  • Distributions from SIMPLE IRAs are taxed under rules generally applicable to Traditional IRA distributions.

Please Note: We reserve the right to alter or withdraw these products or certain features thereof without prior notification. Consult your tax advisor concerning the tax consequences and benefits of these products.

* Visit the IRA website at www.irs.gov for the dollar amount

Coverdell Education Savings Accounts (Coverdell ESA)

Coverdell ESASaving for a minor's education with tax advantages is easy with a Coverdell Education Savings Account.

Coverdell Education Savings Account (ESA)

  • Non-deductible contributions.
  • Withdrawals made for qualified education expenses are tax free for the minor the account is opened for.
  • May be rolled over to a new minor.

Contributions:

  • Almost anyone can contribute.
  • No relationship requirement between contributor and designated beneficiary.
  • Annual contribution limited to $2,000 per beneficiary per year.

Please Note: We reserve the right to alter or withdraw these products or certain features thereof without prior notification. Consult your tax advisor concerning the tax consequences and benefits of these products.