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Personal Retirement Accounts
Traditional IRA (Individual Retirement Arrangement)
Roth IRA (Individual Retirement Arrangement)
This retirement plan is for individuals who may not be able to deduct a traditional IRA and want the added flexibility to make qualified withdrawals.
Business Retirement Accounts
Qualified / Keogh plans
A retirement plan for small businesses for the purpose of making contributions to their employee's retirement benefits.
- Deposited funds may be tax deductible
- Interest is not taxable in the year earned but taxable at the time of withdrawal
- Customers have the option to invest funds in a Cambridgeport Bank Retirement Account
- Visit any one of our 10 branch locations to open an account today
Eligibility:
- Must be under age 70 ½
- Must have earned income
Maximum
Contributions:
- $2,000 or 100% of earned income, whichever is less, per tax year
- Spousal Contribution maximums are $2,000 person
- The maximum contribution is the aggregate of both a traditional IRA and a Roth IRA
Distributions:
- Can begin at age 59 ½ and must begin at age 70 ½
- Subject to 10% IRS penalty
plus income tax if under age of 59 ½
Exceptions to 10% penalty:
Death, disability, equal installments, medical expenses over 7.5% of AGI (as of 1997), health insurance premium for long term employment (as of 1997), 1st time home purchase (as of 1998) and higher education (as of 1998).
Important Information:
Interest
Rate:
- Varies with term and product
Fees
and Penalties:
- $10 annual fee
- Bank CD Penalties: 3 months of earned or unearned interest for terms of less than 12 months. 6 months of earned or unearned interest for terms of 12 months or more. Penalty is calculated on the amount withdrawn.
- Trustee Transfer Fees: $25.00
- Early Withdrawal Fees: $10.00
Bank
to Bank Transfers:
- No minimum or maximum age
- Funds flow directly from one trustee/custodian to another with no constructive receipt of funds by the IRA holder
- Not reported to the IRS
- Unlimited transfers in any one year
Rollovers:
- No minimum or maximum age
- Funds are generally distributed directly to the IRA holder
- Funds are reported to the IRS
- Rollovers are only allowed once per 12-month period per IRA plan
- Visit any one of our 10 branch locations to open an account today
- Contributions can be deposited up to April 15th for the previous year
- Qualifying withdrawals are tax-free
- Option to invest funds in any Cambridgeport Bank Retirement Product
Eligibility:
- Single Individuals:
-If adjusted gross income, (AGI) is less than $95,000 contribution limit is $2,000
-If AGI is between $95,000 and $110,000 refer to the MAGI contribution formula
-If AGI is over $110,000 no contributions are allowed - Married Filing Jointly:
-If total adjusted gross income, AGI, is less than $150,000 each individual may contribute $2000
-If total AGI is between $150,000 and $160,000 refer to the MAGI contribution formula
-If total AGI is over $160,000 no contributions are allowed.
Maximum
Contributions:
Up to $2000 or 100% of earned income based on amount of Adjusted Gross Income. The maximum contribution is the aggregate of both a Traditional IRA and a Roth IRA
Distributions:
- Qualified distributions
can begin after a five year period from the first year of any Roth IRA contribution
AND one of the following events occur:
-Attain age 59 ½
-Become disabled
-Qualify for first time homebuyer
-Death
Non-Qualified distributions will be included as gross income and may be subject to early distribution penalties if under age 59 ½.
Important Information
- Varies with term and product
- $15.00 annual fee
- A plan holder over 59 ½ is permitted to request a rate upgrade, once per account, for the remainder of the term
- Bank CD Penalties: 3 months of earned or unearned interest for terms of less than 12 months. 6 months of earned or unearned interest for terms of 12 months or more. Penalty is calculated on the amount withdrawn.
- Trustee Transfer Fees: $25.00
- Early Withdrawal Fees: $10.00
Simplified Employee Pension (SEP) Features
- Deposited funds may be tax deductible
- Interest is not taxable in the year earned but taxable at the time of withdrawal
- Customers have the option to invest funds in any Cambridgeport Bank Retirement product
Eligibility:
- Employee must be 21 years old
- Employee must have worked with the employer for 1, 2, or 3 of the preceding 5 years
Maximum
Contributions:
$30,000 or 15% of income, whichever is less.
Annual contributions by the employer are discretionary.
Distributions:
- Distribution can begin as early as age 59 ½ and must begin at age 70 ½
- Subject to 10% IRS penalty plus income tax if under the age of 59 ½
Exceptions to 10% penalty:
-Death, disability, equal installments, medical expenses over 7.5% of AGI (as of 1997), health insurance premium for long term employment (as of 1997), 1st time home purchase (as of 1998) and higher education (as of 1998).
Important
Information
Interest Rate
- Varies with term and product
Fees and Penalties
- $10.00 annual fee
- Bank CD Penalties: 3 months of earned or unearned interest for terms of less than 12 months. 6 months of earned or unearned interest for terms of 12 months or more. Penalty is calculated on the amount withdrawn.
- Trustee Transfer Fees: $25.00
- Early Withdrawal Fees: $10.00
Qualified / Keogh Plan Features
- Deposited funds may be tax deductible
- Interest is not taxable in the year earned but taxable at the time of withdrawal
- Visit any one of our 10 branch locations to open an account today
- Customers have the option to invest funds in any Cambridgeport Bank Retirement product
Eligibility:
- Employee must be 21 years old
- Employee must have worked with the employer for 0, 1, or 2 years
Maximum
Contributions:
- PROFIT SHARING: $30,000 or 15% of income, whichever is less. Discretionary funding
- MONEY PURCHASE: $30,000
or 25% of income, whichever is less. Mandatory
funding - PAIRED PLANS (PS & MP): $30,000 or 25% of income, whichever is less
Distributions:
- Distribution can begin as early as age 59 ½ and must begin at age 70 ½
- Subject to 20% IRS withholding
plus income tax if the distribution is eligible for rollover
Exceptions: Direct Rollover Request
Distribution payouts may only be taken following the occurrence of triggering events (e.g. death, disability, separation form service, termination of plan, etc.)
Important
Information
- Plan must be established prior to December 31st
Interest Rate
- Varies with term and product
Fees and Penalties
- $25.00 annual fee
- Bank CD Penalties: 3 months of earned or unearned interest for terms of less than 12 months. 6 months of earned or unearned interest for terms of 12 months or more. Penalty is calculated on the amount withdrawn.
- Trustee Transfer Fees: $25.00
- Early Withdrawal Fees: $10.00
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