Individual Retirement Accounts (IRAs)
The Individual Retirement Account (IRA) remains an excellent method of saving for retirement years. Any individual with wages or self-employment income may contribute to an IRA. With a Trusteed IRA, you have the added flexibility of investing in stocks, bonds, and mutual funds. Additionally, if you have retirement savings from a previous employer, such as a 401(k) or 403(b), you may choose to consolidate those funds into a Rollover IRA, allowing you to maintain the tax-deferred status of your assets while gaining more control over your investment options.
Traditional IRAs
This type of IRA account offers two big advantages or incentives to encourage people to save for retirement. First, Traditional IRA contributions may be tax deductible on the account holder’s tax return. Secondly, earnings on a Traditional IRA are not taxed until the IRA holder or beneficiary takes the money out. It is these accrued earnings, regular deposits, and the passage of time that combine to produce large account balances.
Roth IRAs
Unlike Traditional IRAs, Roth IRA contributions are not tax-deductible. However, if certain requirements are met, qualified distributions—including earnings—are tax-free. Another key advantage of Roth IRAs is that they are not subject to the Required Minimum Distribution (RMD) rules that apply to Traditional IRAs. Additionally, you can continue making contributions to a Roth IRA at any age, as long as you have earned income.
Roth vs. Traditional IRA: which is right for you?
Rollover IRA
A Rollover IRA allows you to move funds from an employer-sponsored retirement plan, such as a 401(k), into an IRA without triggering taxes or penalties, as long as the transfer is handled properly. First Western Bank & Trust can assist with the rollover process by managing the transfer, ensuring compliance with IRS rules, and providing personalized investment management.
Qualified Charitable Distribution (QCD)
Allows individuals age 70 1/2 or older to transfer funs directly from an IRA to a qualified charity, satisfying all or part of their required minimum distribution while excluding the amount from taxable income.
Trust & Wealth
Susan Richard
Chad Erickson
Which is better for me, a Traditional IRA or a Roth IRA?
Frequently Asked Questions
First Western’s Trust & Wealth Department offers Traditional IRAs, Roth IRAs, Rollover IRAs, and Trusteed IRAs. What sets the Trust Department apart is the ability to invest your IRA in stocks, bonds, and mutual funds with professional investment management, rather than limiting you to deposit products. A trust officer can help you choose the IRA type and investment approach that fit your retirement goals.
A Trusteed IRA gives you the flexibility to invest your retirement savings in a range of assets, including stocks, bonds, and mutual funds, with the Trust Department managing the portfolio on your behalf. This is different from a deposit-based IRA, such as an IRA certificate of deposit, which earns a set return and is FDIC insured. A Trusteed IRA is built for investors who want growth potential and professional management within their IRA.
Any individual with wages or self-employment income may contribute to an IRA. The IRA remains one of the most effective ways to save for retirement, since regular contributions, accrued earnings, and the passage of time work together to build substantial balances. A trust officer or your tax advisor can confirm current contribution limits and how they apply to you.
Yes. If you have retirement savings from a previous employer’s 401(k) or 403(b), a Rollover IRA lets you consolidate those funds while maintaining their tax-deferred status and gaining more control over your investment options. First Western Bank & Trust can manage the transfer, ensure it complies with IRS rules, and provide personalized investment management of the rolled-over assets. Handling the rollover properly is key to avoiding unintended taxes or penalties.
No. Unlike Traditional IRAs, Roth IRAs are not subject to Required Minimum Distribution (RMD) rules, so you’re not forced to withdraw funds at a certain age. You can also continue contributing to a Roth IRA at any age, as long as you have earned income. Roth contributions aren’t tax-deductible, but qualified distributions, including earnings, are tax-free when requirements are met.
A QCD allows individuals age 70½ or older to transfer funds directly from an IRA to a qualified charity. The distribution can satisfy all or part of your required minimum distribution while being excluded from your taxable income, which can be a tax-efficient way to give. Because the rules are specific, it’s worth coordinating a QCD with your tax advisor before making the transfer.
Yes. Through a Trusteed or Rollover IRA, the Trust & Wealth Department can provide professional, ongoing investment management of your retirement assets, selecting and monitoring investments aligned with your goals and risk tolerance. This is the same disciplined, fiduciary approach described on our Asset / Investment Management page, applied within your IRA.
No. IRA assets invested through the Trust Department are not FDIC insured, carry no bank guarantee, and may lose value. This is different from a deposit-based IRA or IRA certificate of deposit at First Western Bank, which is FDIC insured up to the maximum allowed by law. A trust officer can explain how your IRA assets are held based on how they’re invested.
Contact our Trust & Wealth Department or visit a branch near you to discuss your retirement goals and get started. Not sure which account fits? Use the IRA calculator on this page or read Roth vs. Traditional IRA: which is right for you? to compare your options before you decide.
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