Inividual Retirement Accounts

Individual Retirement Accounts (IRAs) let you save money to supplement your pension or Social Security benefits. With an IRA, you can save money now, all while taking advantage of yearly tax deductions and deferring taxes on the interest your IRA accumulates.* With an IRA from Solano First, you’re guaranteed competitive dividend rates and the convenience of Direct Deposit. Contact your tax advisor for more information on which type of IRA is best for you.

We offer the following IRA products:

• Traditional IRAs
• ROTH IRAs
• Educational IRAs**
• SEP IRAs

Check out a comparison of the different kinds of IRAs.

IRA Share Certificates require a minimum deposit of $1,000.

Traditional IRAs

This is the best IRA for long-term retirement planning. You can deduct your maximum contribution on your tax return and defer paying taxes until you retire. Withdrawals are permitted at age 59 1/2, when they are taxed as ordinary income.

Roth IRAs

Your maximum contribution to a Roth IRA is not tax deductible, but all future withdrawals are tax-free and penalty-free if the account has been open for 5 years and you are 59 1/2 or older, or if you are buying your first house or paying for a higher education. To find out if you qualify for a Roth IRA, please contact your tax advisor.

Coverdell Education Savings Accounts

Saving for college is more important now than ever before. To set aside money for education expenses, anyone related or unrelated to the beneficiary may set up a Coverdell Education Savings Account for a child or a young adult under the age of 18. In addition to using the money for eligible college and trade school expenses, the funds can be used for public and private elementary and high school expenses.

SEP (Simplified Employee Pension Plan) IRAs

SEPs are an easy, low-cost retirement plan option for small business employers (including self-employed individuals).

Employers may:

• Make Tax-Deductible Contributions To Their Own And Their Employees’ IRAs
  
• Omit Or Reduce Contributions In Years When Contributions Are Unaffordable
  
• Avoid The Administrative Costs And The Reporting Requirements Of Conventional Plans