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Getting Started 

You may have just started working but there's no better time to think about setting up a retirement fund than right now. This is a great time to take advantage of the power of compounding. Starting to save today is the easiest way to ensure a comfortable retirement in the future.
 

Develop a discipline for saving and stick to it
Retirement is a long way off, and it’s easy to spend your money on more immediate needs like rent, student loans, or a new car. But developing the discipline now to save for your retirement is one of the best things you can do for yourself. Don’t just save whatever money you have left over each month; instead, consider a plan to save a percentage of your monthly salary to invest in your future.  Saving smaller amounts throughout working years lets you avoid having to play catch-up later.

Use the power of compounding
Time is on your side.  The sooner you start to save for retirement, the greater your opportunity to take advantage of the power of compounding. 

Take advantage of retirement savings vehicles available to you
Many employers offer retirement plans, such as 401(k)s and 403(b)s.  With these plans, employers often match employee contributions up to a certain percentage of the employee's annual salary.  By not participating in your employer’s plan, you forgo its contribution and can't take advantage of saving pretax dollars.


























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 planning 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.