’21 Tax Season: Benefits of an IRA account
Are you looking to save for your retirement, or do you need a tool that gives you tax relief? An IRA account can help you save for your retirement and at the same time receive a tax relief you need. Here are some of the benefits you will receive with an IRA account:
- It is an accessible product, which you can open with a minimum investment of $250.
- It allows you to save for retirement.
- Immediate tax relief (if it is the deductible IRA type).
- Deferred payment of contributions until retirement (if it is the deductible IRA type).
- Deductible annual contribution (only in the deductible IRA type) up to $5,000 per individual or $10,000 per couple.
- The law provides certain exceptions by which money withdrawals are allowed without the Secretary of the Treasury’s penalty.
In Oriental, you can find an IRA that fits your needs. You must define your risk tolerance level to determine if you want a riskier product or one that gives you greater security. The Diversified Growth IRA (DGI)1 is a variable return IRA that invests in bonds and stocks and is managed by a group of experts in mutual fund management. While the CD IRA2 is a certificate of deposit that offers a fixed yield according to the term you select from 1 to 5 years.
Don’t miss the opportunity; you can open your IRA today without the need to leave your house, call 787-777-7777 or visit www.orientalbank.com for more information about your IRA account.
(1) Only for individuals who are residents of Puerto Rico. The Diversified Growth IRA or DGI is not insured by the FDIC, is not an Oriental Bank deposit or obligation, is not guaranteed by the Bank, and is subject to investment risk, including the possible loss of the principal invested. It also carries greater risk because it uses borrowed money to leverage the asset base of the Diversified Growth IRA trust. Please request the DGI Prospectus at any of our branches or at the offices of Oriental Financial Services Corp. (authorized dealer), Member FINRA/SIPC, and read it carefully before investing. Minimum opening balance: $250. Fees for investment withdrawals (for reasons other than reaching 60 years of age, death, disability, or unemployment): 5% of the investment balance if withdrawn during the first year; 4% of the investment balance if withdrawn during the second year; 3% of the investment balance if withdrawn during the third year; 2% of the investment balance if withdrawn during the fourth year; and 1% of the investment balance if withdrawn during the fifth year. A rollover fee of $54.99 will be charged for each rollover to an IRA in another institution. Subject to an early withdrawal tax penalty of 10% (15% in certain cases) if the early withdrawal does not comply with any of the conditions permitted by the Puerto Rico Treasury Department. There is a 1.80% annual fee for administrative and other services. This annual fee is calculated based on the DGI trust’s average total assets.
(2) Only for individuals. Minimum opening balance of $250. Penalties for early withdrawal will consist of 365 days of interests on the account principal. There is an early withdrawal tax penalty of 10% (15% in certain cases) if the early withdrawal does not comply with any of the conditions permitted by the Puerto Rico Department of the Treasury. Other fees: Distribution by check, $14.99; rollover to an IRA account in another institution, $54.99. Product offered by Oriental Bank. Oriental Bank is a subsidiary of OFG Bancorp. All rights reserved.
[Editor’s Note: This post is sponsored by Oriental.]