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IRAs

Should You Switch Your Traditional IRA to a Roth IRA?

Many people with traditional IRAs have questions about whether converting to a Roth is the right move. We'll help you explore which IRA may be the best way to invest your funds and find a solution that will work hardest for you. Use our IRA Chart to view these IRA options side-by-side.

Contact us at 1.800.385.8664 or 1.800.FULTON.4 to get started.


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What is an IRA

An IRA is an Individual Retirement Account, established by an individual to provide for his or her own retirement. This investment option is an excellent way to save for retirement, while also earning either tax-deferred or tax-free interest. Recent changes in legislation have made it even more beneficial to invest in an IRA.

With all of the options available, isn't it reassuring to know Fulton Bank is here to help? At Fulton Bank, we are committed to helping you make informed decisions about all of your investments, which is why we want you to know some IRA basics before you choose what retirement option is best for you.

Different Types of IRAs

Traditional IRA

The earnings in a Traditional IRA grow tax-deferred until they are withdrawn. Depending on your income, contributions to Traditional IRAs are also tax-deductible up to the full amount of the contribution.

Roth IRA

A Roth IRA is similar to a Traditional IRA in many ways, the major difference being that the contributions to a Roth IRA are not tax-deductible, which also means that the interest and earnings in a Roth IRA accumulate tax-free. The Roth IRA must be specified as such when the account is opened.

Spousal IRA

According to the IRS, you are eligible to contribute to a Spousal IRA if all of the following conditions are met:

  • You must be married at the end of the tax year
  • Your spouse must be under the age 70 1/2 at the end of the tax year
  • You must file a joint return for the tax year
  • You must have taxable compensation for the year
  • Your spouse must either have no compensation or choose to be treated as having no compensation for the tax year

Coverdell Education Savings Accounts (formerly Educational IRAs)

The purpose of this account is to provide people with a tax-advantaged savings instrument for educational needs. The funds contributed to this account are viewed as a gift to the designated beneficiary under the age of 18. It is extremely important that the funds contributed to this account be coordinated with other educational payment plans.

Fulton Bank's IRA Plans

Fulton Bank offers a variety of IRA plans to meet your individual needs. All of our IRAs feature competitive interest rates and some allow you to choose your own term. There is absolutely no fee to open your IRA. Best of all, your Fulton Bank IRAs are insured up to $250,000 by the Federal Deposit Insurance Corporation.

Fixed Rate IRA Certificate of Deposit

When you open a Fixed Rate IRA CD, you can choose your own term. Interest is compounded daily. Account features are:

  • A variety of Fixed Rate IRA CD terms are available.
  • Interest is credited at maturity for terms of 5 months or less and credited semi-annually for terms of 6 months or greater.

IRA Money Market

This IRA money market account allows you to take advantage of fluctuating interest rates. With just a $10 minimum deposit, you can begin saving for a secure retirement and earn tax-deferred interest. The account features are:

  • Rates are subject to change.
  • Interest is compounded and credited semi-annually.
  • Minimum opening balance $10.
  • Deposits can be as low as $10.
  • There is no term, so money can be transferred to a different retirement account at any time.

IRA Variable Rate CD

This IRA account has a maturity date, like a certificate of deposit, with the convenience of making additional deposits, like a savings account. Account features are:

  • Interest is compounded and credited semi-annually.
  • Minimum opening balance $10.
  • Deposits must be a minimum of $10.
  • This account has an 18 month maturity from date opened.
  • Rates are subject to change.

For more information, call 1.800.385.8664 or 1.800.FULTON.4 or stop into your local branch.