Retirement Savings Accounts
Make your money work for you, open a retirement savings account with Dime. Talk to one of our bankers about your financial goals and plans for the future and we can suggest the right kind of retirement account for you. We offer IRAs, Roth IRAs, and other savings options to help make your future exactly how you dreamed it.
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 in retirement. 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
With a Roth IRA, you make contributions with after-tax money that can grow tax-free and then be withdrawn tax-free in retirement. 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:
- Will be in a higher tax bracket in retirement.
- Want to avoid minimum distributions beginning at age 70½
- Want tax-free withdrawals in retirement
Retirement Savings Account FAQs
How much can I contribute to an IRA each year?
In 2018, you can contribute up to $5,500. If you’re age 50 or older, the limit is $6,500. This is the total that can be contributed per year across all IRAs.
For 2019, you can contribute up to $6,000 and $7,000 if you are 50 or older.
For more information please see our IRA informational document here.
What if I need access to the money I deposited?
For a traditional IRA, early withdrawals (before age 59 ½) are subject to a 10% penalty, in addition to any applicable federal and state taxes. For a Roth IRA, early withdrawals of earnings are subject to the same 10% penalty, but contributions can be withdrawn without penalty.
When can I start withdrawing money without penalties?
For both traditional and Roth IRAs, you can make penalty-free withdrawals at age 59 ½.
By opening a Retirement Savings Account, you get free online banking and bill pay with Dime. Sign up to enjoy the flexibility, convenience and security you need.
* A $500 minimum balance is required to open and to earn the Annual Percentage Yield (APY) on this special account offering (maximum of $250,000). APY is effective 1/02/2019. New money only. Funds to open this account cannot be transferred from any existing Dime account. Premature withdrawal is subject to penalty and fees may reduce earnings. In addition to any bank penalty, certain IRS penalties may also apply. Consult your tax advisor. Additional deposits have the same maturity date as the initial deposit and become part of the principal. Additional deposits are also subject to IRS contribution limits. Dime Community Bank reserves the right to cancel or modify this offer at any time without notice and to limit the number of accounts opened. Deposits insured to the maximum amount allowed by law.
Deadline for 2018 IRA contributions is April 15, 2019.
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, is disabled, deceased or is paying first-time home buyer expenses.