Individual Retirement Accounts (IRAs)

Take control of your future with this interest-bearing account. Whether you want to travel the world or relax at home, a Texas Bank IRA helps you achieve the retirement lifestyle you’ve been dreaming of. 

Choose either a traditional or Roth IRA to save the way that works best for you. Both offer great rates and tax benefits* to help you make the most of every dollar. Earn extra interest when you purchase a certificate of deposit within your IRA. Do your future self a favor and open your IRA today!

Summary
  • Competitive interest above standard savings rates
    • Interest paid quarterly
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • Deposits tax-free or tax-deferred*
  • $5,000 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase CDs within IRA
  • $500 minimum deposit to open
Traditional vs. Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax**
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty***
  • Mandatory withdrawals at age 70½ 

Roth IRA

  • Income limits to be eligible to open Roth IRA*
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal**
  • Principal contributions can be withdrawn without penalty**
  • Withdrawals on interest can begin at age 59½
  • Early withdrawals on interest subject to penalty***
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

*Consult a tax advisor.

**Subject to some minimal conditions. Consult a tax advisor.

***Certain exceptions apply, such as healthcare, purchasing first home, etc.