Individual Retirement Accounts (IRAs)
IRAs are a smart option for diversifying your retirement portfolio. Andover Bank offers both Traditional, Roth, and Coverdell Education Savings IRA accounts. You can rely on us to help determine the right type for your situation.
If you’re expecting a lower tax rate during retirement, a traditional IRA allows you to take tax deductions on your deposits today, and pay taxes on your withdrawals during retirement.
If you anticipate a higher tax rate during retirement, a Roth IRA is funded by after-tax income, allowing you tax-free funds upon withdrawal during retirement.
Coverdell Education Savings IRA
Similar to a Roth IRA plan, a Coverdell Education Savings IRA allows parents to deposit after-tax income today, for tax-free withdrawals for educational expenses in the future.