Individual Retirement Account

Retire and head for the Bahamas. Or plan for anything else that’ll make your golden years more golden. It’s never too early or too late to start saving for retirement.

An IRA gives you tax-advantaged* savings at a competitive rate that’s higher than standard savings rates. Choose the IRA that suits you, and start securing your future today.


  • Tax-advantaged* retirement savings
  • Earn competitive interest at rates higher than standard savings rates
  • Variety of IRA options to choose from, including traditional and Roth
  • $25 annual maintenance fee
  • Make automatic contributions via checking or savings
  • Early withdrawal penalties may apply

*Consult a tax advisor

Fixed-Rate IRA

  • Competitive, fixed-rate CD option
  • Maturity terms from 12 months to 7 years
  • Automatically renewable at end of term
  • $500 minimum deposit to open

*Consult a tax advisor

Traditional VS Roth

Both traditional and Roth IRAs offer unique advantages. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at the time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 ½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 72

Roth IRA

  • Income limits to be eligible to open Roth IRA***
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal*
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals on interest can begin at age 59 ½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

*Subject to some minimal conditions. Consult a tax advisor. **Certain exceptions apply, such as healthcare, purchasing first home, etc. ***Consult a tax advisor.

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Newton Federal Bank is a division of Affinity Bank. Newton Federal Bank and Affinity Bank are the same entity for the purpose of calculating FDIC insurance limits and deposits. Effective September 15, 2023, the Bank converted from a federal savings association to a national bank, and as a result, the Company became a bank holding company instead of a savings and loan holding company. Newton Federal is not responsible for and has no control over the subject matter, content, information, or graphics of the web sites that have links here. Please contact us with any concerns or comments. © 2023-2024 All Rights Reserved.