If you are retiring or changing jobs, ask your employer to arrange for a "direct rollover" of your money into a new IRA account with us, and you won’t pay the mandatory 20% withholding tax.

You can also do an IRA-to-IRA rollover. Complete the rollover within 60 days from the date you receive the assets from your old IRA to qualify. Just go to your financial institution and close your IRA, then bring the check to us. The IRS limits the number of these rollovers to one in a 12-month period.

Converting your IRA may have significant tax consequences. Before you take this step, be sure to consult with a tax professional.

A Traditional IRA or Roth IRA are considered Bank IRAs when you put your funds into a savings or CD account. These IRAs are offered through American Savings Bank branches and are FDIC-insured.

A Traditional IRA or Roth IRA are considered Brokerage IRAs^† when you put your funds into an investment such as mutual funds, stocks and bonds. These IRAs are offered through American Savings Investment Services, are not FDIC-insured and are tailored to your preferred investment strategy. Contact a Financial Advisor to learn more about what products may fit your needs.

Contributions into a traditional IRA can be tax deductible and can lower your taxable income. Your earnings also grow tax deferred¹. However, contributions are not tax-deductible with a Roth IRA. For more information, visit our Personal IRAs Comparison page.

Traditional and Roth IRAs have early withdrawal penalties that depend on the specific account terms. Also, withdrawals made before 5 years and before the age of 59 1/2 may be subject to an additional IRS penalty. 

For a traditional IRA, you must begin to take distributions by April 1^st of the year after you become 72 years old. A Roth IRA has no distribution requirements while you're alive, but beneficiaries will be subject to distribution rules after you pass.