Certificates of Deposit (CDs)
A Waukesha State Bank CD is a great choice for your longer-term savings and investment objectives. We offer a variety of options to meet your needs.
- Competitive rates
- Terms from 1 month to 7 years
- Get started for as little as $500
- Interest Reinvestment and Payment Options
- Available as a secure investment option for your IRA
Individual Retirement Arrangements (IRAs)
We have the IRA options to help you meet your specific financial goals and retirement investment objectives. Our friendly Relationship Bankers can assist you with an IRA or 401(k) rollover, or get you started with a new IRA savings program for as little as $1.00.
The following Waukesha State Bank IRAs have no account maintenance fees and are insured by the FDIC up to $250,000. You can choose from competitive fixed rates, variable rates and tiered money market account options.
- Traditional IRAs
- Roth IRAs
- SEPs
- Simple IRAs
Traditional IRA vs Roth IRA
The two most common types of IRAs are the Traditional IRA and the Roth IRA. While both can help you fund your retirement savings,
each have different benefits you can take advantage of to reach your savings goals.
Traditional IRAs
A Traditional IRA is available to individuals at any age with earned employment income. It can provide tax deferred growth of your investment and you may qualify to make pre-tax or tax deductible contributions if certain conditions are met.
Withdrawals of pre-tax contributions and earnings after age 59½ are taxable as ordinary income when withdrawn. Minimum required distributions are required at age 73.
Roth IRAs
A Roth IRA is available to individuals of any age with earned employment income and can provide tax-free growth of your investment.
Contributions are always tax-free when withdrawn and earnings may be federally tax free if certain conditions are met. There are no minimum required distributions during the lifetime of the original owner.
| Traditional IRA | Roth IRA | |
|---|---|---|
| Eligibility Requirements |
No age requirement, but you must earn compensation |
No age requirement, but you must earn compensation |
|
Income Requirements |
No limit to make contributions |
Modified Adjusted Gross Income (MAGI) must be below certain limits |
|
Contributions (Both are Limited to up to 100% of your |
Made BEFORE taxes MAY be tax deductible 1 Can be made at any age if you have earned income |
Made AFTER taxes NOT tax deductible Can be made after age 70½ if you have earned income |
|
Earnings |
Generally tax deferred until withdrawn |
Generally tax deferred AND tax free when withdrawn 2 |
|
Distributions |
Required at 73, or a 25% penalty applies Penalties may apply if taken before age 59½ |
Not required at any age Qualified distributions allowed after the first five years, otherwise subject to penalties Principal only may be withdrawn any time without penalty |
1 Depends on your Modified Adjusted Gross Income (MAGI), if you and/or your spouse are in an employer-sponsored retirement plan, and your income tax-filing status. Generally you are eligible for a full deduction, no matter your income, if you (and your spouse, if married) do NOT actively participate in an employer-sponsored retirement plan. Otherwise you may be eligible for a full, partial or no deduction, depending on your MAGI. See your legal or tax professional for instructions and exceptions.
2 Unless not from a qualified distribution, in which case taxes and penalties could apply.
IRA FAQs
Can I withdraw funds from an IRA before age 59 ½?
Yes, but you may be subject to a 10% early distribution penalty by the IRS unless the funds are used for an allowable exception. In addition, there may be an early withdrawal penalty from your financial institution depending on where you choose to invest your IRA funds. See us for details on circumstances where a penalty can be avoided.
Can I invest in both a Traditional and Roth IRA?
Yes, as long as the total of all your IRA contributions does not exceed the maximum annual contribution amount.
What is a “catchup” contribution?
If you are 50 years old or older, you are able to make an additional $1,000 contribution to your IRA.
What is the difference between an IRA rollover and an IRA transfer?
A rollover IRA is an account where you move your funds from a qualified employer sponsored retirement plan into an IRA.
An IRA transfer is when you transfer funds between two IRA accounts of the same type.
Both a rollover and a transfer can preserve the tax-deferred status of your retirement investment.
Can I convert a Traditional IRA to a Roth IRA?
Yes, however, you will pay federal income taxes now on the conversion amount. This may be advantageous for certain individuals, but there are multiple factors to consider in making a decision to convert. See us to discuss your specific circumstances.
What is a Spousal IRA?
A Spousal IRA allows a working spouse to contribute to an IRA for a non-working spouse. They are subject to the same contribution and income limits as Traditional and Roth IRAs.
What is the deadline to make an IRA contribution?
Contributions for the preceding tax year must be made by April 15th or the federal income tax return deadline. Tax-filing extensions to not apply to IRA contributions.
Additional Offerings
Waukesha State Bank also offers additional options through our wealth management and investment divisions. Click to learn more.
Health Savings Account (HSA)
Waukesha State Bank’s Health Savings Account offers the most competitive product available in the marketplace today, including:
- No set-up fees
- No monthly maintenance fees
- Minimum balance only $1
- Tiered interest rate based on balance
- Debit Mastercard® access
- Free Online Banking
- Unlimited check writing
Why an HSA?
With an HSA, you can pay for qualified medical expenses – tax-free. In combination with a high-deductible health insurance plan (HDHP), HSAs allow you to manage your health care costs with greater control, saving you time and money.
You must have coverage under an HSA-qualified "high deductible health plan" (HDHP) to open and contribute to an HSA. Generally, this is health insurance that does not cover first dollar medical expenses.
HSAs provide triple tax savings:
- Tax deductions when you contribute to your account
- Tax-free earnings through investment
- Tax-free withdrawals for qualified medical expenses
Any contribution amount left over at the end of the year can remain in the account for future medical expenses.
Catch-up contributions are available for those ages 55 and older. Contribution limits change on an annual basis.
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