Individual Retirement Account (IRA)

Are you ready for the scary truth? Most Americans haven’t saved a fraction of what they need to live comfortably in retirement. Even scarier: since they expect to receive only a little or nothing from social security, their latest plan is to “work until they drop.” At Provident, we believe in a healthier work-life balance. And we have just the thing to make that happen.





Plan for the tomorrow you deserve in 3 easy steps.






1. Go with an IRA: An Independent Retirement Account (IRA) is a smart, tax-advantaged way to save for retirement. How does it work? When you make contributions for the year, you may be eligible to deduct that amount from your taxable income, which lowers your tax bill. And anyone can contribute! Unlike the 401(k), the IRA is entirely independent of your employer. 








2. Compare Products: There are three types of IRAs:








  • Traditional IRA: Your initial contributions are tax deductible, but you pay taxes on your earnings when you cash out. You can begin withdrawing funds without penalty after age 59 ½, but you must begin taking your minimum required distributions at age 70 ½. To learn more, please visit
  • Roth IRA: A Roth IRA is exactly the opposite. You pay taxes up front (invest with after-tax income), but when you start withdrawing, the earnings are tax free. Unlike a Traditional IRA, the Roth has no age restrictions. You may make contributions after 70 ½ and there are no mandatory withdrawals.
  • Rollover IRA: Directly transfer all or part of your pension or retirement funds to a Provident Rollover IRA without immediate taxes or penalties.








So, how do you know which one is right for you? The Traditional IRA may be what you’re looking for if you’re seeking a tax deduction or if your income exceeds the qualification requirement of the Roth. The Roth may be what you’re looking for if you’re seeking tax-free withdrawals in retirement or want to avoid minimum required distributions.








But it really boils down to one simple question: would you rather pay now or later? Most people will earn more and find themselves in a higher tax bracket when they retire than during their mid career. Moreover, tax rates will likely increase in the coming years. That means Roth is the way to go. There’s just one wrench in the works. If you’re not earning an income in retirement, you’ll be back in a lower tax bracket; thus, a Traditional IRA is the wiser investment.








For most people, Roth works, but consider your choices carefully. If you need guidance, we can help.








3. Choose an Account: Now it’s time to choose an FDIC-insured investment account. You can benefit from the liquidity of the Provident IRA Statement Savings account or lock in a competitive interest rate from 91 days to 63 months with an IRA Certificate of Deposit. Here’s a comparative breakdown:








Account Features & BenefitsIRA Statement SavingsIRA Certificates of Deposit    
Minimum Balance to Open  $50 $500
Earn competitive Annual Percentage Yield(APY)/Rate
Earn competitive tiered balance APY    
Lock-in with competitive APYs  
Pick your own term - short or long term investing solutions  
FREE Consolidated Statement (multiple accounts)  








Make Provident Your Retirement Planning Headquarters








The future doesn't have to be so uncertain with an individual retirement account. It’s easy to open, fund or rollover and Individual Retirement Account at Provident. Simply visit any branch, fill out an application, designate a beneficiary and make your deposit. For more information or guidance, please visit a branch or give us a call: 1-800-448-PROV (7768). We’ll do our best to ensure that your “golden years” are truly golden.








To learn about additional investment and retirement savings solutions, see our Life Stages page.