IRA 
The following are IRA (Individual Retirement Accounts) available at Southland:
Roth, Traditional, and SEP IRA Savings Accounts.
  • Certificates (minimum deposit $1,000)
  • Jumbo Certificates (minimum deposit $100,000)
  • IRA Savings Account (minimum deposit $25)
Traditional IRA
Accumulate dividends on the money in your account with no taxes to pay until withdrawal. This lets you keep more of your dividend earnings to add to your account along with your annual tax-deductible contributions, increasing the amount you can earn over time for your retirement.

Recent changes:
If you are covered by a retirement plan at work, your deduction for contribution to a traditional IRA will be reduced (phased out) if your modified adjusted gross income (AGI) is:
  • More than $96,000 but less than $116,000 for a married couple filing a joint return or qualifying widow(er)
  • More than $60,000 but less than $70,000 for a single individual or head of household
  • Less than $10,000 for a married individual filing a separate return
Roth IRA
Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, qualified distributions are tax-free (check with a professional tax adviser for list of qualified distributions). Contributions can be made to your Roth IRA after you reach age 70 ½ and you can leave amounts in your Roth IRA as long as you live.

Recent changes to adjusted gross income (AGI) limits:
  • $191,000 for married individual filing jointly or qualified widow(er),
  • $10,000 for married individual filing separately and lived with their spouse at any time during the year, and
  • $129,000 for single, head of household or married filing separately.
  • Contributions are not tax deductible
  • Tax free - penalty free distributions if used for a "qualified" reason
  • No mandatory distributions
Employer Provided IRAs
The Simplified Employee Pension Plan (SEP) allows an employer to provide retirement benefits to their employees. Under a SEP Plan, an employer would make contributions directly into the SEP-IRAs of each eligible employee. A SEP-IRA is a Traditional IRA established by an eligible employee for the purpose of receiving employer contributions under the SEP Plan. Employees may also contribute to their SEP-IRAs.

 Features 
Traditional Account:
  • Annual contributions up to $5,500 plus a $1,000 catch-up contribution if over the age of 50
  • Depending on your income, your contributions may be tax deductible—consult your tax advisor
  • Withdrawals at retirement will be taxed at your then-current rate when you will most likely be in a lower tax bracket
  • Terms of 6 months to 5 years
  • Dividends remain tax deferred until money is withdrawn
  • Additions to Certificate accepted at maturity on Certificates
  • Quarterly statements
  • Rollovers and transfers accepted
Roth IRA Account:
  • Maximum contribution by employer is 25% of employee earnings, or $50,000 whichever is less. Contribution from employer is based on the Employers plan specifications.
  • Employee may make a maximum annual contribution of $5,500, or $6,500 if the employee is over 50 years old.