Individual Retirement Accounts
The best time to think about the future is here in the present. Start building a better tomorrow now with an IRA from First Banking Center.
With rising concerns about the future state of Social Security, more individuals are looking for new ways to prepare for their retirement.
Planning now and saving regularly are essential steps toward creating a secure financial future for retirement. Open an IRA today so you can rest easy knowing your future looks bright.
- Summary
- Plan for the future
- Great interest rates
- Possible tax deferred benefits*
- Flexible terms
- Possible penalties for early withdrawal
- Low initial deposit
- FDIC insured
*Refer to a tax consultant on deferment eligibility.
- Types of IRAs
Since people plan for retirement differently, there are several IRA options to help savers meet their investment goals.
Traditional IRA*
If you are under age 70½ and have earned income from employment, you may contribute the lesser of 100% of compensation or the maximum dollar limit.
Receive a 100% deduction on your annual contribution if you don't receive benefits under an employer's retirement plan. You can still contribute to a Traditional IRA when receiving employer retirement benefits, but IRA deductibility is gradually phased out above Adjusted Gross Income (AGI) levels.
Spousal IRA*
Spouses who do not work outside the home may contribute annually to an IRA even if a working spouse participates in a pension plan.
Roth IRA*
Invest your after-tax dollars and watch the funds grow tax-deferred with the Roth IRA. The greatest benefit is you can withdraw your principal and earnings tax-free if you satisfy a five-year holding period and meet certain requirements.
An individual may contribute the lesser of 100% of compensation or maximum dollar limit and is gradually phased out above specified Adjusted Gross Income (AGI) levels.
Contributions may be made even after an individual attains age 70½.
*Refer to a tax consultant on deferment eligibility.
