Planning for your Retirement

You no longer believe it’s enough to count on social security or your company pension to allow you to continue the lifestyle to which you’ve become accustomed. With the cost of living, medical expenses, and other basics continually increasing, we all have to be prepared for that day when we no longer have a traditional income supporting our needs. You are ready to consider a retirement plan at Dedham Savings.

We have a variety of products for you to consider as you get ready for retirement, among them a traditional or Roth IRA. This handy chart shows you the subtle similarities and differences between the two types of IRAs available to you.

Account Contributions Deductibility Distributions  Taxes Conversions
Traditional IRA 
  • Limits on contributions vary from tax year to tax year. Find out more.
  • Can contribute the max or 100% of compensation, whichever is less
  • If over 50, can contribute more than max as a catch-up contribution
  • Can contribute every year but not required
  • Can start or contribute by April 15 or when your tax return is due
  • Yes-Depending on income level, your IRA contribution may be deductible even if you are in an employer sponsored plan. Ask us about threshold limits.
  • Permitted anytime after 59 ½ but must start by April 1 of year following the year you turn 70 ½.
  • Can receive distributions after 59 ½ even if you earn income
  • Subject to 10% penalty if withdrawn prior to age 59 ½ except for special conditions*
  • Paid at the time of withdrawal
  • Funds left on deposit (including interest and dividends) continue to earn on a tax-deferred basis
  • n/a

Roth IRA

  • Limits on contributions vary from tax year to tax year. Find out more.
  • Can contribute the max or 100% of compensation, whichever is less
  • If over 50, can contribute more than max as a catch-up contribution
  • Can contribute every year but not required
  • Can start or contribute by April 15 or when your tax return is due
  • No-Contributions are non-deductible
  • Make IRS penalty-free and tax-free withdrawals of your funds,(not including earnings) at any time. Bank Penalty could apply.
  • Subject to income taxes and possible penalties if withdrawn prior to completing 5 year holding period and for other than 4 qualifying reasons**
  • Never tax deductible as contributions are made in after-tax dollars. If qualifying reasons exist**, earnings can be withdrawn free of income tax.
  • Can convert traditional IRA to a Roth IRA under certain conditions+
  • Amount converted will be subject to income taxes.
  • Funds converted on not subject to a 10% premature distribution penalty tax.

How can I get more information?


We realize that sometimes you need more information to make your retirement decisions. If you’d like to talk with a Dedham Savings retirement expert, visit one of our branches or call our retirement planning department at 781-320-1445 and we’ll be happy to share everything we know.