Traditional CD IRAs

PrintFriendly and PDF

certificates of depositA Traditional CD IRA from CNB is an interest-bearing retirement account for individuals under the age of 70½ who want to build a tax-deferred fund to supplement retirement income. Individuals can take advantage of tax deductible contributions and earnings that grow tax-deferred until the time of withdrawal. Traditional IRA holders are required to start taking distributions at age 70½. Distributions taken prior to age 59½ are subject to an early withdrawal penalty. Ask a retail banker for the current contribution limits.

Distributions are taxable but penalty-free if withdrawn under one of the following circumstances:

  • Attain the age of 59½
  • Become disabled
  • Payment for certain health insurance, medical expenses, and higher education expenses
  • Purchase of a first home up to $10,000 (lifetime maximum)
  • Receiving payments in the form of an annuity
  • Death (payments to beneficiaries)