The chart below is designed to show you the value of saving on a regular basis and the benefit of compounding interest. *
| |
Average balance in your account if you
don't make any withdrawals |
| Annual Contributions |
In 5 Years |
In 10 Years |
In 20 Years |
In 30 Years |
In 40 Years |
|
$500
(About $2 per day)
|
$2,849 |
$6,379 |
$16,174 |
$31,217 |
$54,318 |
| $1,000 |
$5,697 |
$12,757 |
$32,348 |
$62,434 |
$108,636 |
| $2,000 |
$11,394 |
$25,515 |
$64,697 |
$124,868 |
$217,272 |
| $3,000 |
$17,092 |
$38,272 |
$97,045 |
$187,302 |
$325,908 |
| $4,000 |
$22,789 |
$51,029 |
$129,393 |
$249,736 |
$434,544 |
Unlike a contribution to a Traditional IRA, Roth IRA contributions are not tax deductible. However, when you withdraw money from a Roth IRA, none of it -- and that includes the interest -- will be taxed, assuming that the Roth IRA has been open for at least five tax-years and you are over age 59 ½. If you withdraw money before the age 59 ½, an IRS penalty will apply.
* The chart above is based on an Annual Percentage Yield of 4.29%. Yields may vary with a First National Bank of Durango IRA.
First National Bank of Durango Account Information:
Interest is compounded daily for all IRA accounts. Fees may reduce earnings. There is a $500 minimum balance required to open an IRA. The First Flex IRA interest rate is variable and subject to change at any time without notice. A penalty may be imposed for early withdrawal. Please see a Personal Banker for complete details.
