Individual Retirement Accounts (I.R.A.'s)
Enjoy financial security by saving for your retirement! First State Bank & Trust offers several types of IRA's.
Traditional IRA
The amount contributed to your IRA may be tax deductible, depending on your adjusted gross income. Check with your tax advisor to learn if this is a good option for you.
Note: Some IRA investments may not be insured by the FDIC. Mutual funds, stocks and bonds are not deposits or obligations of any bank; are not guaranteed by any bank; and are not insured or guaranteed by the FDIC, Federal Reserve Board or any other government agency. Investment in mutual funds, stocks or bonds involves risk, including possible loss of principal. Additional information is available from our personal bankers. Please contact us.
Roth IRA
Contributions are not tax deductible but earnings grow tax-free. This is excellent account to save for retirement and make tax-free withdrawals later on.
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- Individuals may make non-deductible contributions to a ROTH IRA of 100% of earned income or a maximum total of $3,000.00 per year in 2003, whichever is less. See table below for current contribution limits.
- Single filers with an Adjusted Gross Income (AGI) less than $95,000.00 and joint filers with an AGI less than $150,000.00 are eligible for the $2000.00 maximum contribution.
- Distributions will not be included in income or receive the 10% Premature Distribution Penalty as long as the principal and earnings have remained in the IRA for at least 5 years from the first contribution date and the withdrawal is considered a "qualified distribution".
Note: Some IRA investments may not be insured by the FDIC. Mutual funds, stocks and bonds are not deposits or obligations of any bank; are not guaranteed by any bank; and are not insured or guaranteed by the FDIC, Federal Reserve Board or any other government agency. Investment in mutual funds, stocks or bonds involves risk, including possible loss of principal. Additional information is available from our personal bankers. Please contact us.
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SIMPLE IRA (Savings Incentive Match Plan for Employees)
This is a retirement plan where employees (including the employer) can make pre-tax contributions to IRAs. Available for businesses with fewer than 100 employees.
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- This IRA is for employers with fewer than 100 employees.
- Employee and employer contributions are 100% vested.
- The employer contribution must satisfy a matching contribution or a non-elective Contribution.
- See a personal banker for more details.
Note: Some IRA investments may not be insured by the FDIC. Mutual funds, stocks and bonds are not deposits or obligations of any bank; are not guaranteed by any bank; and are not insured or guaranteed by the FDIC, Federal Reserve Board or any other government agency. Investment in mutual funds, stocks or bonds involves risk, including possible loss of principal. Additional information is available from our personal bankers. Please contact us.
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S.E.P. IRA (Simplified Employee Pension Plan)
This IRA is ideal for a small business or a self-employed individual to set up a retirement plan for himself or herself and all employees who meet qualifications. Annual contribution limits for the S.E.P. IRA may be higher than those for Traditional or Roth IRAs.
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- Employer deposits money into employees' IRA's.
- Contribution is the lesser of 25% of compensation or $40,000.00.
- Incorporated, unincorporated, full-time or part-time businesses eligible.
- See a personal banker for more details.
Note: Some IRA investments may not be insured by the FDIC. Mutual funds, stocks and bonds are not deposits or obligations of any bank; are not guaranteed by any bank; and are not insured or guaranteed by the FDIC, Federal Reserve Board or any other government agency. Investment in mutual funds, stocks or bonds involves risk, including possible loss of principal. Additional information is available from our personal bankers. Please contact us.
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