IRA Certificate of Deposit
IRA Certificate of Deposit
Mercantile Bank’s IRA CDs offer tax-deferred retirement savings with flexible terms, low minimum deposits, and options to adjust rates or add funds during the term.
Features & Benefits You've Come to Expect
- Earn more tax deferred interest on your retirement savings
- Minimum deposit is $500
- Available in terms of 1-60 months
- Available in an Add to CD; add funds at any time during the term of the CD
- Available in a Flex CD; allows a one-time “flex” in the interest rate you can earn
- If funds are withdrawn from the CD before the maturity date, the bank may impose an early withdrawal penalty (not an IRS penalty)
Contribution Limits
| IRA Type | 2024 | 2025 |
|---|---|---|
Traditional |
$7,000 |
$7,000 |
Roth |
$7,000 |
$7,000 |
Catch-Up Contribution |
$1,000 |
$1,000 |
SEP |
$69,000 |
$70,000 |
IRA Frequently Asked Questions
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What is an IRA?
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Individual Retirement Accounts are designed to encourage individuals to save for retirement
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Mercantile Bank offers 3 different types of IRAs:
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Traditional
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Roth
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SEP – Simplified Employee Pension
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Who can establish an IRA?
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The individual must have earned income
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Earned income is defined as wages, salaries, professional fees, or self-employment (W-2 income)
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This doesn’t include rental income, interest income, dividend income, pension, or annuity income
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Mercantile Bank employees are not responsible for determining if an individual has earned income or is eligible to contribute to an IRA
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Why establish an IRA?
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Possible tax deduction on Traditional IRA contributions
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IRA growth is tax deferred
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Withdrawals may be tax free for Roth IRAs
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Most importantly: saving for retirement
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This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.