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The reality of retirement is almost upon you. It’s time to do some concrete planning. You’ve done your best to save for retirement. Now it’s time to see where you are and to catch up if you need to.
 

Assess your current financial position for retirement readiness
Before you retire, it’s important to understand your financial needs in retirement and whether you have the savings and income necessary to meet those needs. Taking the time now to understand your financial situation will help you enter retirement with a clear financial plan.  To see where you stand, use our retirement calculators.

Fill in the gaps
If you find that your current savings may not be enough to meet your needs in retirement, there are still things you can do to better prepare:

• Increase retirement savings as much as possible and take full advantage of retirement plan and IRA catch-up rules.

• If you’re not already maximizing your contributions to your employer-sponsored retirement plan, now is the time to do so.

• Consider contributing to an IRA in addition to your employer-sponsored plan.

• If you’re over age 50, you can take advantage of the "catch-up" provisions for your IRA and employer-sponsored retirement plan.

– For Traditional and Roth IRAs, there is a catch-up provision of $1,000 above the standard limits.

– For 401(k)s, the catch-up amount is $5,500 above the contribution limits for 2009.

Develop a plan to eliminate all debt prior to retirement
Managing expenses during retirement is key to a successful retirement plan. A great way to minimize expenses during retirement is to eliminate your debt before you retire.

Work longer and delay Social Security
Many people are deciding to delay retirement for a few years or to continue working part time during their retirement. Each of these strategies may allow you to delay withdrawals from your retirement savings and defer Social Security payments – resulting in larger payments later in life.

Review your investment strategies
No matter where you stand relative to your retirement savings, as you prepare to retire, your investment strategy is more important than ever. You’ll want your assets to be there for you in retirement, but you also want to see your savings continue to grow. We have experts who can help you think through this important concern.





At Eastern Bank, we offer a variety of solutions to help you get the most out of your retirement savings. An experienced Retirement Specialist can help you choose the solution that’s right for you.

Traditional IRA

Roth IRA

Rollover IRA

SEP IRA

Ideal for Individuals looking to take advantage of tax-deductible contributions and tax-deferred savings Individuals looking to forgo tax-deductible contributions in exchange for tax-free distributions Individuals looking to rollover qualified assets from an employer-sponsored retirement plan without incurring costly tax consequences Self-employed individuals or business owners looking to take advantage of tax-deductible contributions and tax-deferred growth
Key Benefits

Tax-deductible contributions

Tax-deferred growth

Withdrawals in retirement may be tax-free

Earnings on contributions may be tax-free

No mandatory age for taking distributions

Conversions allowed from IRAs and eligible employer-sponsored plan rollovers

Avoid current income taxes and penalties

Tax-deferred growth

May offer better control over investment options

May offer lower costs

Tax-deductible contributions for business owners and employees

Tax-deferred growth

Maximum annual contribution 1

Individuals may contribute the
lesser of:
- Up to $5,500
- Up to 100% of compensation
(2013 limit)

Catch-up provision:  Individuals age 50+ are allowed to contribute an additional $1,000 per year

Individuals may contribute the
lesser of:
- Up to $5,500
- Up to 100% of compensation
(2013 limit)

Catch-up provision:  Individuals age 50+ are allowed to contribute an additional $1,000 per year

No Roth conversion maximum

No maximum

The lesser of:
- Up to 25% of compensation
- Up to $51,000
(2013 limit)
Eligibility requirements 2

Anyone under 70 ½


Click here if you ARE covered by a Retirement Plan at work


Click here if you are NOT covered by a Retirement Plan at work

No age limitation


Annual contributions allowed based on following 2013 income limits:

-  For Individuals, annual contribution phase out begins at $112,000 until $127,000

-  For married couples, filing jointly, contribution phase out begins at $178,000 until $188,000

No income limit for conversions

Anyone with employer-sponsored plan assets Based on document provisions
Contribution deadline By individual’s tax-filing deadline, excluding extensions - generally April 15th By individual’s tax-filing deadline, excluding extensions - generally April 15th Unless done via a trustee to trustee transfer, 60 days from receipt from plan distribution By employer’s tax-filing deadline, including extensions
Withdrawals 3 All distributions are typically subject to federal and state taxes

For distributions prior to age 59 ½, you may be subject to an IRS 10% early withdrawal penalty tax (some exceptions apply)
Contributions may be withdrawn at any time without penalty

Earnings may be distributed tax-free under the following conditions:

- Met five taxable year holding period; AND

- Distribution is due to attainment of age 59 ½, death, disability, and first-time home purchase (maximum $10,000)
All distributions are typically subject to federal and state taxes

For distributions prior to age 59 ½, you may be subject to an IRS 10% early withdrawal penalty tax (some exceptions apply)
All distributions are typically subject to federal and state taxes

For distributions prior to age 59 ½, you may be subject to an IRS 10% early withdrawal penalty tax (some exceptions apply)
Age for required distributions By April 1 of the year after you turn 70 ½ No required distributions By April 1 of the year after you turn 70 ½ By April 1 of the year after you turn 70 ½
1. Must have earned income; also subject to income / age restrictions.

2. Other conditions may apply.

3. Early withdrawal fees on bank CD(s) may apply (some exceptions apply).

This information is for information purposes only. Please be advised nothing contained herein is meant to be legal or tax advice.  Further, we strongly encourage you to seek qualified legal and tax advice regarding your specific situation.

We understand that it takes careful planning to ensure a comfortable retirement. Our Retirement Specialists can also help you build a personalized savings plan, working with you to understand:

• Your specific investment goals

• Your level of comfort with risk

• How you are currently saving and investing

• How much income you will need in retirement


We’re here for you
To evaluate what stage you're at in planning for your financial future, schedule a meeting today with one of our experienced Retirement Specialists.  Call 1-800-EASTERN (327-8376), then select option 4, from the menu of banking choices.