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Moving Forward 

Hopefully you’ve already begun a program for your retirement fund. If you haven’t, it’s not too late to start. You’re still young enough to take advantage of the power of compounding and move forward with your retirement plan.
 

Use the power of compounding
You still have many years left until retirement. Use those years to grow your retirement funds with the power of compounding interest.

Stay disciplined
With so many bills to pay and so many conflicting priorities, it’s easy to put off saving for retirement, especially if you’ve already started to build your nest egg. But the years go by fast and there will always be other bills to pay. Don’t let your plan be sidetracked. It’s important to continue (or to start if you haven’t already) to set aside a percentage of your salary each month to save for your future.

Understand your investment goals and asset allocation plan
Your investment goals will change throughout your life. Your retirement is still far away, and a key goal for your investments should be growth consistent with your risk tolerance. Your asset allocation plan should reflect that goal. As you grow older and closer to retirement, your goal will shift toward lower-risk, income-producing assets and your asset allocation plan will shift accordingly. No matter what your current investment goal is, it’s always important to diversify your assets in order to manage investment risk.
























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. One of our Eastern Bank Retirement Specialists can 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 get started on your financial future or evaluate where you are, 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.