Retirement Savings Accounts

1.10 %APY<sup>1</sup>

One great rate. Two great choices. From your trusted retirement advisors.

IRA Advantages

With a traditional IRA, you contribute pretax income toward investments that can grow tax-deferred. This means you pay taxes on money only when you make withdrawals. You may also deduct your contributions from your tax return, depending on eligibility. This account is best for those who: 

  • Are looking for tax deductions now

  • Aren't eligible for a Roth IRA because income is high

  • Are expecting to be in a lower tax bracket when they retire

  • Beginning tax year 2020, there is no age limitation for a Contribution to a Traditional IRA

  • Beginning tax year 2020, the Traditional IRA participants have to begin to remove their required minimum distribution in the tax year when they attain age 72.

Roth IRA Advantages

With a Roth IRA, you make contributions with after-tax money that can grow tax-free. By paying taxes on your money right away, you don't have to worry about taxes on your Roth IRA later. This account is best for those: 

  • Required minimum distribution doesn't pertain to a Roth IRA.

  • Want tax-free withdrawals.

IRA Rates

Certificates of Deposit & IRA Rates
Account Name Interest Rate APY1
3 Month 0.10% 0.10%
4 Month 0.45% 0.45%
6 Month 0.20% 0.20%
8 Month 0.30% 0.30%
9 Month 0.30% 0.30%
10 Month 0.30% 0.30%
12 Month 0.40% 0.40%
14 Month 0.40% 0.40%
15 Month 0.40% 0.40%
16 Month 0.40% 0.40%
18 Month 0.40% 0.40%
24 Month - 2 Year 0.65% 0.65%
30 Month 0.90% 0.90%
36 Month - 3 Year 0.70% 0.70%
48 Month - 4 year 0.75% 0.75%
60 Month - 5 Year 0.80% 0.80%
84 Month - 7 Year 1.09% 1.10%

Retirement Savings Account FAQs

In 2019, you can contribute up to $6,000 if you're under age 50.

If you’re age 50 or older, the contribution limit is $7,000.

This is the total that can be contributed per year across all IRAs.

Beginning tax year 2020, there is no age limitation for traditional IRA contributions.

Combined Traditional and ROTH IRA regular contributions may not exceed the maximum contribution limit mentioned above.

For a traditional and Roth IRA, early withdrawals (before age 59 ½) are subject to a 10% IRS penalty. In addition traditional IRA distributions are fully taxable based on your tax bracket. Roth IRA distributions are not subject to taxability. See tax advisor for additional information in reference to your taxability.

For both traditional and Roth IRAs, you can make IRS penalty-free withdrawals at age 59 ½ and older.

With Roth IRAs, earnings can be distributed tax-free if the Roth IRA holder made the first Roth IRA contribution at least five years ago AND has attained age 59½.

APY = Annual Percentage Yield.

<sup>1</sup>A $500 minimum balance is required to open and to earn the Annual Percentage Yield (APY) on this special IRA CD account offering. APY is effective 1/15/2020. Additional deposits are permitted at any time on this account. These additional deposits will have the same maturity date as the original or renewed deposit. Any deposits made become part of the principal balance. Additions to retirement CD’s are subject to any IRS contribution limitations. Any withdrawal before the end of the account maturity date would be a CD premature withdrawal and may be subject to certain IRS penalties. Please consult your tax advisor. Deposits insured to the maximum amount allowed by law. Dime Community Bank reserves the right to cancel or modify this offer at any time without notice and to limit the number of account opened. This offer is limited to one per household and only available to New York State residents. Funds to open this account cannot be transferred from any existing Dime account.

Deadline for 2019 IRA contributions is April 15, 2020.

<sup>2</sup>No penalty promotional IRA CD is for a 3-year term from date of account opening. To receive no penalty benefit, money must remain in the account for the first seven days after deposit. Any withdrawal within that first seven-day period would be a CD premature withdrawal and is subject to penalty and fees that may reduce earnings. After the seven-day period, account holder may withdraw partial or all the funds at no penalty. Deposits insured to the maximum amount allowed by law. This account is not subject to a Dime Early Withdrawal penalty; however, any early withdrawal may also be subject to certain IRS penalties. Please consult your tax advisor.