Retirement Center

At Eastern Bank, we offer a variety of solutions to help you get the most out of your retirement savings. See our comparison chart of options offered at Eastern Bank.

 

  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 consequences5 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
(2018 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
(2018 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 $54,000
(2018 limit)
Eligibility
requirements 2

 
Anyone under 70 ½

Click here If you have a work retirement saving plan, download the 2017 Contribution limits.

Click here If you do not have a work retirement saving plan, download the 2017 Contribution limits.
No age limitation

No income limit for conversions

Annual contributions allowed based on following 2017 income limits:
-  For Individuals, annual contribution phase out begins at $118,000 until $133,000
-  For married couples, filing jointly, contribution phase out begins at $186,000 until $196,000
-  For married couples, filing separately, contribution phase out begins at $0 until $10,000
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 distribution4 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).
4. Only one 60 day rollover is allowed within 12 rolling months.

5. Individuals should compare all costs, investment options and features of their current plan with those of the new IRA before making a rollover decision.

 

This information is for informational purposes only. Please be advised nothing contained herein is meant to be legal tax advice, or retirement investment advice (including about IRA rollovers). Further, we strongly encourage you to seek qualified legal and tax advice regarding your specific situation. Fees may apply to these products.