The Importance of Thoughtful Retirement Planning
At Chemung Canal Trust Company, retirement planning is about more than numbers — it’s about peace of mind. Whether you’re in your early career or approaching retirement, having a clear plan ensures your future feels secure, not uncertain.
Our Retirement Specialists help clients navigate complex financial questions like:
- Will I have enough to retire comfortably?
- How much should I contribute each year?
- Which plan — IRA or 401(k) — is right for me?
By focusing on personalized strategies, Chemung Canal helps clients save smarter, invest wisely, and retire confidently.
Understanding the Basics: IRA vs 401(k)
What Is an IRA?
An Individual Retirement Account (IRA) lets you save for retirement with tax advantages and full control over investment decisions. Chemung Canal offers three flexible IRA types:
- Fund-Allocated IRA – Professionally diversified for balanced growth.
- Managed IRA – Overseen by investment officers who monitor and adjust your portfolio.
- Self-Directed IRA – Gives you full control to choose your own investments.
IRAs are ideal for individuals seeking independent savings solutions or those looking to supplement an employer plan.
What Is a 401(k)?
A 401(k) is typically sponsored by an employer and allows pre-tax or post-tax (Roth) contributions directly from your paycheck. Employers often match a portion of your contributions — a benefit no IRA can match.
While Chemung Canal doesn’t administer employer 401(k)s directly, we provide 401(k) rollover services and help clients transfer balances into IRAs for broader investment flexibility and fiduciary oversight.
Chemung Canal’s IRA Options
Chemung Canal Trust Company provides IRA solutions that combine flexibility, professional management, and personalized advice:
| IRA Type | Key Benefits | Ideal For |
| Fund-Allocated IRA | Diversified across funds to match your risk profile | Long-term, balanced investors |
| Managed IRA | Ongoing professional oversight and adjustments | Those seeking hands-off management |
| Self-Directed IRA | Freedom to select your own investments | Experienced, active investors |
These IRA structures allow Chemung Canal’s team to align your portfolio with your retirement goals — from accumulation to income distribution.
Comparing Contribution Limits and Tax Benefits
As of 2025, contribution limits remain an important consideration:
| Plan Type | Annual Contribution | Catch-Up (Age 50+) | Tax Treatment |
| IRA (Traditional/Roth) | $7,500 | +$1,000 | Pre- or post-tax depending on type |
| 401(k) | $23,000 | +$7,500 | Pre-tax (Traditional) or after-tax (Roth) |
Traditional IRA contributions may be tax-deductible, while Roth IRA contributions are made after-tax — providing tax-free withdrawals in retirement. Chemung Canal’s specialists help clients choose the optimal balance between tax savings now and tax-free growth later.
Employer Matching and 401(k) Advantages
If your employer offers a 401(k) match, contribute enough to take full advantage. It’s essentially free money for your future.
Chemung Canal often assists clients in evaluating their employer’s plan and coordinating it with their personal IRAs to ensure optimal tax and investment alignment.
Flexibility and Investment Choice
Chemung Canal takes a broad, research-driven approach to fund selection — not limited to proprietary products. Their investment officers carefully analyze and select options best suited to each client’s retirement objectives, without accepting sales loads or marketing fees from fund providers.
This transparent, fiduciary-first model ensures that your investments are based solely on your goals — not on commissions or conflicts of interest.
Withdrawal Rules and Required Minimum Distributions (RMDs)
Withdrawals from Traditional IRAs and 401(k)s before age 59½ generally incur a 10% penalty, except in specific circumstances (education, first home, medical expenses).
At age 73, Required Minimum Distributions (RMDs) begin for Traditional IRAs and 401(k)s. Roth IRAs, however, remain exempt — allowing for greater estate-planning flexibility.
Chemung Canal’s team provides ongoing monitoring to ensure your withdrawals remain compliant and tax-efficient.
Trusts, Beneficiaries, and Inherited IRAs
Chemung Canal goes beyond basic account management by offering:
- Beneficiary designation advice
- Inherited IRA strategies
- Utilization of trusts as beneficiaries
- Asset allocation across all holdings
These services protect your legacy and ensure your retirement savings transition seamlessly to loved ones.
How Chemung Canal Builds a Personalized Strategy
Chemung Canal Retirement Specialists evaluate your full financial picture — income, investments, and long-term goals. They help you:
- Balance IRA and employer plan contributions
- Determine the right asset mix
- Adjust strategies as market conditions or laws change
Their goal is simple: help you enjoy today while planning confidently for tomorrow.
Common Mistakes to Avoid
- Ignoring your employer’s 401(k) match
- Withdrawing early without understanding penalties
- Overlooking RMD deadlines
- Keeping beneficiaries outdated
- Neglecting portfolio rebalancing
Chemung Canal proactively helps clients avoid these pitfalls through regular plan reviews and fiduciary guidance.
FAQs
Can Chemung Canal help me decide between an IRA and 401(k)?
Yes. Their specialists evaluate your full situation and design a plan that fits both short- and long-term goals.
Does Chemung Canal offer Roth IRAs?
Yes. Both Traditional and Roth IRAs are available through their Fund-Allocated, Managed, and Self-Directed options.
Can I roll my 401(k) into an IRA at Chemung Canal?
Absolutely. They can help you execute a tax-free rollover and reallocate your funds strategically.
What if I already have investments elsewhere?
Chemung Canal can consolidate and manage your holdings while maintaining your investment flexibility.
Does Chemung Canal charge commissions on fund selections?
No. Their fiduciary investment officers don’t accept sales loads, marketing, or consulting fees from fund providers.
How do I get started?
Contact a Chemung Canal Retirement Specialist at 800-836-3711 to begin your personalized retirement plan.
Choosing between an IRA and 401(k) doesn’t have to be complicated — especially with expert guidance from Chemung Canal Trust Company.
Whether you’re just starting to save, planning to retire soon, or managing inherited assets, Chemung Canal’s fiduciary team offers the clarity, transparency, and strategy you need to build a retirement that works for you.
Start your journey toward a confident retirement today. Call 800-836-3711 or visit ChemungCanal.com/retirement-services.
