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IRA Savings Plans

Fund your future with an Individual Retirement Account (IRA) from American Express. The sooner you start, the longer your money has to grow.

An Individual Retirement Account (IRA)§ allows you to save for retirement with tax-free growth or on a tax-deferred basis. American Express offers the financial security of FDIC-insured retirement saving in either a Traditional or Roth IRA Plan, with funds deposited in IRA High Yield Savings or IRA Certificate of Deposit accounts.

Advantages of Saving in an American Express IRA Plan

Tax advantages

IRA tax benefits help your savings grow faster

No fees

No custodial fees (or any other fees) for IRA Savings

FDIC insurance

IRA accounts FDIC insured up to applicable limits

Traditional vs. Roth IRA Plan Comparison

Both IRA Plans are used to save for retirement, the difference is in how and when you receive the tax benefits. Eligibility criteria also differ between Traditional and Roth Plans. The below chart highlights the main considerations you should be aware of when choosing an IRA Plan that is right for you. Before opening an IRA Plan, we recommend you consult with your tax advisor.

    Traditional IRA   Roth IRA
Contribution Limit         (2021) $6,000; $7000, if age 50 or older.         (2021) $6,000; $7000, if age 50 or older.
Tax Advantages         Earnings are tax-deferred.         Earnings and qualified withdrawals are tax-free.
Tax Treatment         Contributions are tax-deductible up to certain income limits.         Contributions are not tax-deductible.
Tax Payment         Funded with pre-tax dollars - taxes are paid on withdrawals, including any earnings.         Funded with after-tax dollars - you won't have to pay taxes on qualified withdrawals, including earnings.
Income Eligibility         Income limits apply for tax-deductible contributions.         Limits based on income and tax filing status.
Tax Rate Considerations         Generally most favorable when you are closer to retirement and/or you expect your tax rate to be lower when you withdraw.         Generally most favorable when you are further from retirement and/or you expect your tax rate to be higher when you withdraw.
Withdrawal Rules         Withdraw contributions and earnings without IRS penalty at age 59 1/2.         Withdraw earnings without IRS penalty at age 59 1/2 if your account is at least 5 years old.
Required Minimum Distribution         Distributions are required to start by age 70 1/2 if you turned 70 1/2 by 12/31/2019. If you turn 70 1/2 in 2020 (or later), distributions are not required until you are age 72.         Not applicable.
Amex Savings IRA benefits

Enjoy the same savings account benefits you have come to expect from American Express within your IRA Plan.

No minimums, no monthly fees

24/7 superior customer service

Easy, online access to your account

Deposit funds as often as you like in High Yield Savings

FDIC insured

Backed by the service & reliability of American Express

Build Your Nest Egg

What is an IRA and How Does it Work?

Retirement savings simplified

Your high-interest earnings are waiting.

 

Accounts offered by American

Express National Bank. Member FDIC. Each depositor is insured to at least $250,000.

Learn More from FDIC.gov

*The Annual Percentage Yield (APY) as advertised is accurate as of . Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened.

 

For a CD account, rates are subject to change at any time without notice before the account is opened. Your rate will be fixed on the business day‡ we receive your completed application, provided we receive your deposit within 30 days after your application is approved. After a CD is opened, additional deposits to the account are not permitted. Early CD withdrawals may be subject to significant penalties which could cause you to lose some of your principal. Please see the Deposit Account Agreement for additional terms and conditions and Truth-in-Savings disclosures.

 

**The national rate referenced is from the FDIC's published Monthly Rate Cap Information for Savings deposit products. Visit the FDIC website for details.

 

†You are generally permitted to make up to nine (9) withdrawals or transfers out of your High Yield Savings Account during a monthly statement cycle. However, please note that there are strict rules for withdrawing money from an IRA plan (including an IRA High Yield Savings Account) before retirement age without incurring a penalty. Read More in FAQs.

 

‡For purposes of transferring funds, business days are Monday through Friday, excluding holidays. Transfers can be initiated 24/7 via the website or phone, but any transfers initiated after 7:00 PM Eastern Time or on non-business days will begin to be processed on the next business day.

 

♢Calculations are estimates of expected interest earned. Actual results may vary, based on various factors such as leap years, timing of deposits, rounding, and variation in interest rates. The first recurring deposit is assumed to begin in the second period after any initial deposit.

 

§IRA Contributions are subject to aggregate annual limits across all IRA plans held at American Express or other institutions. IRA distributions may be taxed and subject to penalties based on IRS guidelines. Required minimum distribution, if applicable, is only relevant to this IRA plan and does not take into consideration other IRA plans held at American Express or other institutions. Please see IRS.gov for more information. We recommend you consult with a financial or tax advisor when making contributions to and distributions from an IRA plan account.