Individual Retirement Accounts (IRAs)

Earn even higher rates.

Our standard savings rates are already pretty great. But CSB IRAs earn even higher rates. The sooner you start saving, the better your earnings. View IRA rates.

Enjoy tax advantages¹.

IRAs offer several tax benefits, including tax deductions, deferred taxes, and tax-free earnings. Which advantages you enjoy will depend on the IRA you choose.

Which IRA is right for you?

With a traditional IRA, you pay taxes when you withdraw money from your account during retirement. With a Roth IRA, the process reverses. You pay taxes on the money you contribute to your account, while the money you withdraw during retirement is not taxed.

If you need to withdraw money early, a Roth IRA allows for greater flexibility — but you may face a penalty if you withdraw from a traditional IRA. For more information you can always give us a call or visit your local branch.

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

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• Principal contributions can be withdrawn without penalty¹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

• Enjoy tax advantages¹ tailored to fit your lifestyle
• Earn competive interest rates
• Traditional IRA and Roth IRA options available
• $10 annual fee waived for Preferred Checking account holders
• The combined annual contribution limit for Roth and Traditional IRAs for the 2024 tax year is $7,000, or $8,000 if you are age 50 or over (see current contribution limits)
• Funds can be used to purchase CDs within IRA - availalbe CD terms 12-60 months
• $500 minimum deposit to open

Statement Savings IRA accounts are also availabe. Speak to a Relationship Banker for more information at 888-744-4272. 

How much can I contribute to an IRA?

The combined annual contribution limit for Roth and Traditional IRAs for the 2024 tax year is $7,000, or $8,000 if you are age 50 or over. Your Roth IRA contributions may also be limited based on your filing status and income. See IRA Contribution Limits.

Is my IRA contribution deductible on my tax return*?

If neither you nor your spouse is covered by a retirement plan at work, your deduction is allowed in full.

For contributions to a traditional IRA, the amount you can deduct may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.

Roth IRA contributions aren't deductible.

Can I contribute to a traditional or Roth IRA if I'm covered by a retirement plan at work?

Yes, you can contribute to a traditional and/or Roth IRA even if you participate in an employer-sponsored retirement plan (including a SEP or SIMPLE IRA plan). However, if you or your spouse is covered by an employer-sponsored retirement plan and your income exceeds certain levels, you may not be able to deduct your entire contribution. See the IRS website for more information regarding IRA deduction limits.

I want to set up an IRA for my spouse. How much can I contribute?

If you file a joint return and have taxable compensation, you and your spouse can both contribute to your own separate IRAs.

Your total contributions to both your IRA and your spouse's IRA may not exceed your joint taxable income or the annual contribution limit on IRAs times two, whichever is less. It doesn't matter which spouse earned the income.

Roth IRAs and IRA deductions have other income limits. See IRA Contribution Limits and IRA deduction limits.

Can I take money from my traditional IRA, or my SEP or SIMPLE IRA, while I am still working?

You can take distributions from your IRA (including your SEP-IRA or SIMPLE-IRA) at any time. There is no need to show a hardship to take a distribution. However, your distribution will be included in your taxable income and it may be subject to a 10% additional tax if you're under age 59 1/2. The additional tax is 25% if you take a distribution from your SIMPLE-IRA in the first 2 years you participate in the SIMPLE IRA plan. There is no exception to the 10% additional tax specifically for hardships. See chart of exceptions to the 10% additional tax.

Do I request the distribution check directly from my employer or from the financial institution where contributions to my SEP or SIMPLE IRA are invested?

You will need to contact the financial institution holding your IRA assets.

If I withdraw money from my IRA before I am age 59 1/2, which forms do I need to fill out*?

Regardless of your age, you will need to file a Form 1040 and show the amount of the IRA withdrawal. Since you took the withdrawal before you reached age 59 1/2, unless you met one of the exceptions, you will need to pay an additional 10% tax on early distributions on your Form 1040. You may need to complete and attach a Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts PDF, to the tax return. Certain distributions from Roth IRAs are not taxable.

Can I deduct the 10% additional early withdrawal tax as a penalty on early withdrawal of savings?

No, the additional 10% tax on early distributions from qualified retirement plans does not qualify as a penalty for withdrawal of savings.

Will I have to pay the 10% additional tax on early distributions if I am 47 years old and ordered by a divorce court to take money out of my traditional IRA to pay my former spouse?

Yes. Unless you qualify for an exception, you must still pay the 10% additional tax for taking an early distribution from your traditional IRA even if you take it to satisfy a divorce court order (Internal Revenue Code section 72(t)). The 10% additional tax is charged on the early distribution amount which you must include in your income and is in addition to any regular income tax from including this amount in income. Unlike distributions made to a former spouse from a qualified retirement plan under a Qualified Domestic Relations Order, there is no comparable exception.

The only divorce-related exception for IRAs is if you transfer your interest in the IRA to a spouse or former spouse, and the transfer is under a divorce or separation instrument (see IRC section 408(d)(6)). However, the transfer must be done by:

• changing the name on the IRA from your name to that of your former spouse (if transferring your entire interest in that IRA), or
• a trustee-to-trustee transfer from your IRA to one established by your former spouse. Note: an indirect rollover doesn't qualify as a transfer to your former spouse even if the distributed amount is deposited into your former spouse's IRA within 60-days.

See Retirement Topics - Divorce

Is my balance insured?

Yes, Clinton Savings Bank offers both Federal Deposit Insurance Corporation (FDIC) and Depositors Insurance Fund (DIF) to protect your deposits. FDIC covers up to $250,000 in deposits per account owner/ownership category. This means individual accounts and joint accounts at insured institutions can each receive $250,000 of insurance with a common account owner. All deposits above the FDIC insurance amount are insured by the Depositors Insurance Fund (DIF).

What other types of Savings Accounts do you have?

We have several different savings account types — so you can choose the one that fits your specific needs. A full list of our savings products can be found on our Savings page.

* Consult a tax advisor.