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The Time Is Now to Start Saving for Retirement
Saving for retirement with an IRA offers a number of benefits. We’re here to help you choose the right option based on your current needs and future retirement savings goals. What’s more, you can choose either a traditional or Roth IRA when opening your account.
IRA Savings
Saving money with an IRA savings account allows you to add more to your account at any time.
- No minimum balance required to open
- Additional deposits as little as $5 can be made at any time
- Traditional and Roth IRAs available
- Flexible savings solution with minimal investment risk & FDIC Insurance
- Competitive interest rates
CD IRA
Save with the guaranteed interest of a CD with the tax advantages of a retirement account.
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Open with as little as $500
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Additional deposits as little as $5 can be made at any time
- Multiple term options to meet your timeframe
- Traditional and Roth IRA options available
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Tax-advantaged and FDIC-insured
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Competitive interest rates and fixed terms
No Matter Which Option You Choose, It's Easy to Get Started Today
Chat Online with our Support Team
Monday - Friday, 8 am to 5 pm CST. Live chat is available for questions 24/7/365.
Choosing the IRA That's Right For You
Traditional and Roth each have their advantages. The key is to determine which is right for you. Here are some things to consider. You should consult your tax advisor if you aren't sure.
| Traditional IRA | Roth IRA | |
|---|---|---|
| Overview |
This Individual Retirement Account allows contributions to accumulate tax-deferred until withdrawn. This is a great option if you don't have an employer-sponsored retirement plan or want to supplement such a plan.
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A Roth IRA provides tax-free withdrawals and non-deductible contributions to the account. Unlike a traditional IRA, a Roth IRA doesn't require you to take distributions and you can continue to contribute after age 70 1/2. |
| Who Can Invest? |
If a spouse is covered by a workplace plan: Deduction phases out at AGI $81,000 – $91,000 (single) / $129,000 – $149,000 (married filing jointly, contributor covered).
If only spouse is covered: $242,000 – $252,000. If not covered, no AGI limit.
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No age limit. Full contribution if MAGI < $153,000 (single) / < $242,000 (married filing jointly). Partial contribution: $153,000 – $168,000 (single) / $242,000 – $252,000 (joint). There is a phase-out of contribution amounts as AGI approaches these upper limits. |
| What Are the Tax Advantages? | If you are not an active participant in an employer-sponsored plan, your contributions are fully deductible. If you participate in an employer-sponsored plan, your contributions may be deductible based upon your adjusted gross income. No annual taxes due (tax-deferred) until withdrawn in retirement. | Contributions are not tax-deductible, yet your earnings grow tax-free. |
| Are There Limits on Contributions? | You can contribute $7,500 for 2026; If age 50 or older, contribution of $8,600 in 2026 (includes $1,100 catch-up) or limited by earned income (whichever is less) can be made. | You can contribute $7,500 for 2026. If age 50 or older, contribution of $8,600 (includes $1,100 catch-up) for 2026 or limited by earned income (whichever is less) can be made. May be phased out as AGI approaches above upper limits. |
| Is There a Deadline for Account Opening and Contributions? | Contributions for a specific year must be made by the tax filing deadline for that year. | Contributions for a specific year must be made by the tax filing deadline for that year. |
| Do I Pay Taxes on Withdrawals? | Yes. Withdrawals (except nondeductible contributions) are taxed as ordinary income. | No. All qualified withdrawals are tax-free. |
| Are Withdrawals Required? | Yes, due to the SECURE Act, you do not have to take withdrawals until you reach age 73. | No. |
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When Can I Make Withdrawals?
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Withdrawals may incur a 10% penalty with exception of the following:
Attainment of age 59 1/2
Death or permanent disability
First-time home purchase ($10,000 maximum)
Qualified higher-education expenses
72(t) periodic payments
Certain medical expense(s) and medical insurance costs
Qualified military reservist distribution
The beneficiary of a deceased IRA owner
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Same criteria for Traditional IRA withdrawals, except Roth IRA withdrawals cannot be taken without penalty until at least 5 years from the date of the first contribution or conversion. |
| What Are My Investment Options? | Horizon Bank offers both FDIC-insured options such as Certificates of Deposit and non-FDIC options, including stocks and mutual funds, through Horizon Private Wealth Management. |
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Changing Jobs? Roll Over Your IRA
If you’ve recently changed jobs or retired and would like to protect the balance in your previous employer’s retirement plan, Horizon Bank's Rollover IRA is for you.
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Continue to accrue tax-deferred earnings
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Transfer retirement savings without tax penalties or other hassles
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Full protection from bankruptcy
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No limits on the rollover amount
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Rollovers can be opened at any time
IRA FAQs
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What are individual retirement accounts?
Individual Retirement Accounts (IRAs) are designed to help you plan for your retirement. They are technically a type of savings plan, but designed to offer significant tax benefits that save you the most money for when you're ready.
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When can withdrawals be made?
Withdrawals can potentially incur a 10% penalty with exception of the following: upon reaching age 59 1/2, death or permanent disability, beneficiary of deceased IRA owner, qualified military reservist distribution, certain medical expenses, first home purchase (maximum of $10,000), qualified higher-education expenses, 72 periodic payments.
For Roth IRAs, earning withdrawals cannot be taken without penalty until at least 5 years from the year of the first contribution or conversion.
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Are withdrawals mandatory?
Yes. Beginning at age 72 (or 73 if you turned 72 after December 31, 2022), withdrawals will be required for traditional IRAs. There is no requirement for Roth IRA withdrawals. Inherited IRAs of all types have withdrawal requirements.
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Do I pay taxes on withdrawals?
Yes. Any withdrawals (not including nondeductible contributions) will have regular income taxes and possible penalties if qualifying conditions are not met. There are no taxes or penalties on qualified direct rollovers.
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Am I qualified for a Horizon Bank rollover IRA?
Almost anyone with a qualified employer plan distribution can invest funds into a Rollover IRA. (Exceptions include: mandatory distributions, required minimum distributions, distributions on amounts that exceed limits, non-spousal death benefit distributions, hardship withdrawals and outstanding loan balances.)
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What are the tax advantages of an IRA rollover?
Contributions when rolled over remain tax-deferred as well as any additional earnings to the account.
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Are there limits on rollover IRA contributions?
There is no limit on the amount you can roll over into a rollover IRA. Rollover funds do not count toward annual IRA contribution limits.
Any new contributions made after the rollover follow the standard IRA rules. For the 2026 tax year:
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You may contribute up to $7,500 if you are under age 50
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You may contribute up to $8,600 if you are age 50 or older
For Roth IRAs, contribution eligibility is subject to income (MAGI) limits, which may reduce or eliminate how much you can contribute. However, there is no income limit on converting funds to a Roth IRA, though the converted amount may be taxable.
Note: IRS rules apply to timing and frequency of rollovers, including deadlines for completing a rollover and limits on certain types of transfers.
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Is there a deadline for account opening and contributions on a rollover IRA?
Rollovers can be opened anytime as long as it is within 60 days of the distribution of assets from your employer-sponsored plan only once per year.
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What are my investment options with a rollover IRA?
Horizon Bank offers both FDIC-insured options such as Certificates of Deposit and non-FDIC options, including stocks and mutual funds, through Horizon Private Wealth Management.
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What if I have an employer-sponsored retirement plan?
Horizon Bank has a variety of options to work around or supplement employer-sponsored plans. We often find that you can save additional money in conjunction with these plans, and together we can figure out exactly how much more you can save.