Tax-Deferred Accounts

Traditional IRAs

With a Traditional IRA account, funds contributed grow tax-deferred and may be tax-deductible. The money you deposit into this account isn’t taxed until you withdraw it. If you take money out of this account before age 59 ½, you will have to pay a penalty in most cases.

The IRA owner must have earned income (wages) during the tax year for which the regular contribution is made. For maximum annual contribution and tax-deductibility please seek advice from your tax consultant.

Minimum opening contributions, early withdrawal penalty or compensating fees may apply.

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Roth IRAs

With a Roth IRA, the funds that you contribute are not tax-deductible; however, any money you withdraw from the account (including earnings) will not be taxed. Ask Bank of Labor how to help you establish a Roth IRA account.

  • Available to persons with earned income or to non-working spouses regardless of age, subject to income limitations
  • For maximum annual contribution please seek advice from your tax consultant.
  • Minimum opening contributions, early withdrawal or compensating fees may apply

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Transfer and Rollover IRAs

With a transfer IRA, you move your IRA funds from custodian to custodian or from trustee to trustee, making the transaction easier for tax purposes, since no 1099s are required. A rollover IRA is distributed from one IRA or qualified plan, then deposited into another IRA or qualified plan within a 60-day period. This allows the funds to keep their tax-advantaged status.

  • Transfer IRAs make the transaction easier for tax purposes
  • Rollover IRAs deposit funds from one qualified plan to another


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Simplified Employee Pension Plans

A simplified employee pension plan (SEP) gives employers a simplified way to contribute to IRAs set up by their employees. Bank of Labor assists businesses of any size, even sole proprietors, to establish an SEP.

  • Available to sole proprietors, partnerships and corporations
  • Contributions are tax deductible
  • Contribution options are flexible with low administrative costs

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Defined Contribution Plans

A defined contribution plan is a type of retirement plan in which the employer’s annual contribution amount is specified. This qualified plan is a tax-deferral vehicle for retirement purposes.

  • Benefits based on employee and employer contributions
  • Contributions are tax deductible
  • Restrictions on distributions without penalty

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Defined Benefit Plans

In a defined benefit plan, the benefits are based on a formula that promises a specific monthly benefit at retirement. In this retirement plan, the investment risk and portfolio management remain under the control of the company. Let Bank of Labor establish this benefit for your employees.

  • Available to companies of any size
  • Typically allows employees to contribute more than other types of plans
  • Benefits are not dependent on asset returns

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