Tax-Deferred Accounts
An Individual Retirement Account (IRA) is a special savings plan that lets you put aside money earned today for use in your retirement. Brotherhood Bank offers several types of IRAs and other tax-qualified plans. We’ll do whatever it takes to help you create the right retirement plan for your business or organization.
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Traditional IRAs
Contributions to this account can grow tax-deferred and may be tax-deductible.
- Available to persons under age 70 1/2
- For maximum annual contribution please seek advice from your tax consultant
- Minimum opening contributions
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Roth IRAs
Contributions to this account are not tax deductible, but you are not taxed on withdrawals (including earnings).
- Available to persons with earned income regardless of age
- For maximum annual contribution please seek advice from your tax consultant
- Minimum opening contributions
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Transfer and Rollover IRAs
A rollover or transfer IRA allows you to move your IRA to another qualified plan within a 60-day period.
- Easier transactions for tax purposes
- No 1099s required
- Funds keep tax-advantaged status
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Simplified Employee Pension Plans (SEP)
This plan provides a simple way for employers to contribute to their employee’s IRA.
- Available to sole proprietors, partnerships and corporations
- Low administrative costs
- Flexible contribution options
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Defined Contribution Plans
This plan allows employers to give to a retirement plan for a specified annual amount.
- Benefits based on employee and employer contributions
- Contributions are tax deductible
- Some restrictions on distributions
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Defined Benefit Plans
This plan is based on a formula that provides a defined monthly benefit amount at retirement.
- Available to companies of any size
- May offer increased contribution options
- Benefits are not dependent on asset returns
