Employer Individual Retirement Plans
Help your employees save for retirement with a First Commerce IRA. As a business member, your employees are eligible to become First Commerce members and take advantage of all the great products and services we provide.
We offer three different types of accounts: Traditional, Roth, and Education (also called a Coverdell Education Savings Account).
| Traditional | Roth | Education | |
|---|---|---|---|
| Best for | Retirement | Retirement | Qualified education expenses (kindergarten through college or trade school) |
| Income limit? | No | Full contributions up to $125,000/yr for singles and $204,000/yr for couples Phases out at: $144,000/yr for singles and $214,000/yr for couples |
No |
| Income requirement? | Income must be from compensation or self-employment | Income must be from compensation or self-employment | No |
| Maximum annual contribution under age 50 | $6,000 | $6,000 | $2,000 per child under 18 |
| Maximum annual contribution over age 50 | $7,000 | $7,000 | n/a |
| Tax-deductible contributions | Tax deferred up to 100% depending on Annual Gross Income and participation in an employer-sponsored retirement plan | No | No |
| Tax on earnings | Grows tax-deferred until withdrawn | Grows tax-free if held for at least five years | No |
| Tax on withdrawn funds | Withdrawals are taxed as income | No tax on contributions. No tax on earnings after age 59 ½ | No (for qualified expenses) |
| Required minimum distribution or withdrawal | Age 72 | No | Account must be liquidated by Age 30 |
| Withdrawal penalty | Most withdrawals before age 59½ result in IRS penalties | Most withdrawals before age 59½ result in IRS penalties | Funds withdrawn and not used for education expenses will result in IRS penalties |
| Other | n/a | n/a | Funds can be transferred between accounts for children in the same family |
For more information, visit IRS.gov. Consult your tax advisor for your eligibility and best options for your situation.
IRA Rates
Dividends are posted monthly for all IRA accounts.
| Traditional IRA | Roth IRA | Education IRA | ||||
|---|---|---|---|---|---|---|
| Average Daily Balance | Dividend Rate | APY | Dividend Rate | APY | Dividend Rate | APY |
| $50.00 – $9,999.99 | 0.050% | 0.050% | 0.050% | 0.050% | 0.050% | 0.050% |
| $10,000.00 – $24,999.99 | 0.100% | 0.100% | 0.100% | 0.100% | 0.100% | 0.100% |
| $25,000.00 – $49,999.99 | 0.150% | 0.150%; | 0.150% | 0.150% | 0.150% | 0.150% |
| $50,000.00 – $99,999.99 | 0.200% | 0.200% | 0.200% | 0.200% | 0.200% | 0.200% |
| $100,000.00 – $249,999.99 | 0.250% | 0.250% | 0.250% | 0.250% | 0.250% | 0.250% |
| $250,000.00 – $499,999.99 | 0.300% | 0.300% | 0.300% | 0.300% | 0.300% | 0.300% |
| $500,000.00 and above | 0.350% | 0.350% | 0.350% | 0.350% | 0.350% | 0.350% |
Looking for a way to save and lock in higher rates? We also offer IRA CDs with flexible term lengths and fixed rates of return.
For more information or to open an IRA, contact our Business Services Team or visit any of our locations.
