Individual Retirement Account (IRA)

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 
• $25 contribution required at opening
• Contributions are tax deductible on state and federal income tax² 
• Earnings are tax deferred until withdrawal 
• Withdrawals can begin at age 59½ 
• Early withdrawals subject to penalty³ 
• Mandatory withdrawals at age 73

Learn more about traditional IRAs.  

Roth IRA

• Income limits to be eligible to open Roth IRA¹ 
• Contributions are NOT tax deductible 
• Earnings are 100% tax free at withdrawal² 
• Principal contributions can be withdrawn without penalty² 
• Withdrawals on interest can begin at age 59½ 
• Early withdrawals on interest subject to penalty³ 
• No mandatory distribution age 
• No age limit on making contributions as long as you have earned income 

Learn more about Roth IRAs.
  

¹Consult a tax advisor.

²Subject to some minimal conditions. Consult a tax advisor.

³Certain exceptions apply, such a first-time home purchase, college expenses, and birth or adoption expenses.

A SEP (Simplified Employee Pension) IRA is a Traditional IRA set up under a written arrangement that allows employers to contribute to the IRA on the employee's behalf (employer contributions may be discretionary). Generally, SEP IRAs have the same rules and requirements as Traditional IRAs.

Learn more about requirements, current maximum contribution limits and other SEP IRA information.

*Consult a tax advisor. 

Important Information About Procedures for Opening a New Account:

Amarillo National Bank complies with section 326 of the USA PATRIOT Act. Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account such as name, address, date of birth and taxpayer identification. We may ask to see your driver's license or other identifying documents.

FDIC Insurance

NOTICE: By federal law, as of 1/1/2013, funds in a non-interest-bearing transaction account (including an IOLTA/IOLA) will no longer receive unlimited deposit insurance coverage, but will be FDIC-insured to the legal maximum of $250,000 for each ownership category. Learn more.