IRA Accounts

If you’re planning for retirement and looking for a better way to manage your investments, transitioning your IRA to a trusted local bank can be a wise step. Whether you’re consolidating accounts, seeking better service, or rethinking your strategy, making the move to SouthStar Bank offers personalized support, a broad range of account options, and peace of mind for your retirement future. In this guide, we’ll walk you through why and how to transition your IRA to SouthStar Bank, and what you need to know to make the process smooth and tax-efficient. Why Consider an IRA Transfer? An Individual Retirement Account (IRA) is one of the most powerful tools for long-term saving, but not all IRA providers offer the same value. You might consider transitioning your IRA if: You’re looking for more personalized, local service. You want to consolidate multiple IRAs into one, easier-to-manage account. Your current IRA has high fees or limited investment options. You’ve changed jobs and need to roll over a 401(k) into an IRA. You’re interested in a Roth conversion for tax-free retirement income. At SouthStar Bank, our experienced financial team works with you one-on-one to understand your retirement goals and help you make informed choices about your future. Benefits of Moving Your IRA to SouthStar Bank Transitioning your IRA to SouthStar Bank gives you access to: Local, personalized service from real people who know your name and care about your future Flexible IRA options including Traditional, Roth, SEP, and SIMPLE IRAs FDIC-insured IRA savings accounts and Certificates of Deposit (CDs) for low-risk investors Self-Directed IRA with Checkbook Control offering flexible investment options Simple rollover and transfer support to make the transition stress-free Whether you’re nearing retirement or just getting started, our retirement solutions are designed to meet you where you are and grow with you. How to Transition Your IRA to SouthStar Bank Review Your Current IRA Start by looking at your current IRA account. Note the type (Traditional or Roth), the investment performance, fees, and if it aligns with your long-term goals. Contact a SouthStar Bank Specialist Our team is here to guide you through every step. We’ll discuss your options, explain the benefits of different IRA types, and help you choose the best solution. Contact our IRA experts at ira@southstarbank.com or 512.384.3948. Initiate a Direct Transfer We recommend a direct trustee-to-trustee transfer, which moves your funds from your existing provider straight into your new SouthStar Bank IRA. This avoids taxes and early withdrawal penalties. Monitor and Confirm Our team will keep you informed throughout the process, and we’ll ensure your funds are moved safely and securely. IRA transfers typically take 7-14 business days, but in some cases transfers can take longer. Let SouthStar Bank Help You Plan Your Retirement When it comes to transitioning your IRA, you deserve more than just a transaction—you deserve a relationship. At SouthStar Bank, we believe retirement planning is personal. That’s why we offer tailored advice, responsive service, and a commitment to helping your savings grow. Ready to transition […]

Planning for retirement involves more than just saving money; it’s also about understanding how and when to access your retirement funds. SouthStar Bank proudly offers Individual Retirement Accounts (IRAs) to support your retirement goals. These accounts provide unique benefits targeted at putting you in a great position to retire when your career comes to a close. While these accounts offer several advantages, your IRA will also have withdrawal restrictions. Understanding IRA withdrawal rules and regulations is essential for avoiding penalties and maximizing the benefits of your IRA. Before diving into the IRA withdrawal rules, it’s essential to review the two primary types of IRAs: Traditional IRAs and Roth IRAs. The rules for withdrawing funds differ depending on which one you have. Traditional IRA: Contributions are typically tax-deductible when you make them, but withdrawals are taxed as ordinary income. Roth IRA: Contributions are made with after-tax dollars, so you won’t pay taxes on withdrawals if certain conditions are met. A crucial milestone for both Traditional and Roth IRAs is reaching the age of 59½. Once you reach this age, you can withdraw from your IRA without facing the IRS’s 10% early withdrawal penalty. However, some specific nuances depend on the type of IRA. Traditional IRA Withdrawal Rules As mentioned previously, contributions made to Traditional IRAs are tax-deductible. This means that withdrawals made after the age of 59½ won’t be penalized but will be subject to income tax unless you’ve made non-deductible contributions to your account. The IRS mandates that you start taking Required Minimum Distributions (RMDs) from your Traditional IRA at age 73. Roth IRA Withdrawal Rules For Roth IRAs, the rules are a bit more flexible. You can withdraw your contributions at any time (after the age of 59½), tax and penalty-free, since those contributions were made with after-tax dollars. However, to withdraw earnings without taxes or penalties, you must meet two conditions: You must be at least 59½ years old. Your Roth IRA must have been open for at least five years. If you withdraw earnings before meeting these requirements, they could be subject to taxes and a 10% penalty. Required Minimum Distributions (RMDs) As mentioned, Traditional IRAs require RMDs starting at age 73. These are the minimum amounts you must withdraw each year, which are based on your account balance and life expectancy. Roth IRAs, however, do not require RMDs during the account holder’s lifetime, making them an attractive option for those who want to leave their IRA funds to heirs. The 10% Early Withdrawal Penalty If you need to access your IRA funds before age 59½, you’ll generally face a 10% early withdrawal penalty. However, there are several exceptions to this rule. Some of the most common exceptions for both Traditional and Roth IRAs include: Disability First-time home purchase (up to $10,000) Qualified education expenses Medical expenses exceeding 7.5% of your adjusted gross income Health insurance premiums during unemployment It’s essential to check whether your specific situation qualifies for an exception before making an early withdrawal. Planning […]