Retirement Plan Services

Individual Retirement Plans

Planning now and saving regularly are essential steps toward creating a secure financial future for retirement. An IRA is a wise investment option for anyone with earned income.

With concerns rising about the state of Social Security, more individuals are looking for new ways to prepare for their retirement. Recent modifications to Individual Retirement Accounts (IRAs) allow even more people to benefit from these savings plans.

IRAs can be an important part of your retirement savings strategy, and they can offer a number of advantages:

• Security - By contributing to an IRA, you are taking an important step toward a secure financial future.
• Tax deferred benefits - You may receive tax-deferred benefits on your IRA if you meet income eligibility or qualified distribution requirements.
• Flexibility - Since you are not required to make an IRA contribution, you have the flexibility to decide whether or not you want to contribute each year.
• Accessibility - Some retirement plans only allow distribution of funds at certain times. With your IRA you may withdraw funds whenever you wish, but may be subject to penalties if you're under age 59½.

FBC's Trust Department offers two types of IRA vehicles to help savers meet their retirement goals:

Self-Directed IRA

This is more of an investment vehicle allowing you the flexibility to direct your IRA investments to meet your financial objectives, and can be in the form of a Traditional, Roth, Rollover, or Spousal IRA.

A Self-Directed IRA is best suited for an experienced investor who is knowledgeable about managing personal finances and is willing to accept some risk that comes with higher growth potential. You have the ability to purchase stocks, bonds, mutual funds, or other investment options.

Managed IRA

A Managed IRA is an investment management account that can be in the form of a Traditional, Roth, Rollover, or Spousal IRA.

Our staff has access to information and analysis from many sources, and is constantly aware of changing conditions in our increasingly complex economy. Your account would be structured based upon the guidelines and objectives identified by you with our investment managers.

Our services are designed to compliment your retirement goals and maximize the returns from your portfolio.

Not a deposit. Not FDIC insured. No Bank Guarantee. May lose value. Not insured by any federal government agency.

Corporate Retirement Plans

If you are looking to reduce your corporate income taxes and reward your employees, a qualified retirement plan is one of the best tax shelters available. Your company is allowed a current tax deduction for its contributions to the plan, the employee pays no tax on the money contributed until a distribution is made, and the earnings from investments accumulate tax-free. Other reasons for adopting a retirement program are to attract employees, reduce employee turnover, increase employee incentive, and accumulate funds for retirement.

Our staff will help you design a retirement program that fits your company's needs, assist in implementation and on-going administration of the plan. We will educate and communicate to your employees the features of the plan, investments choices, why retirement planning is an important part of their lives, and provide assistance in helping employees meet their retirement goals.

The following are just a few retirement programs that First Banking Center has to offer:

SEP IRA

A Simplified Employee Pension (SEP) Individual Retirement Account is established for an employee to which the employer makes direct tax-deductible contributions.

This type of vehicle may be suitable for self-employed individuals or small business owners with variable earnings who seek a retirement plan with minimal IRS filings, paperwork, and low administrative cost.

401(k)

This qualified profit sharing plan contains a cash or deferred arrangement. It offers an employee the opportunity to participate in saving for retirement on a pre-tax basis that will reduce the employee's current taxable income.

This type of vehicle may be suitable for small to large companies who want to offer a salary reduction plan with a maximum number of options to their employees.

SIMPLE IRAs

Companies with 100 or fewer employees who earned $5,000 or more in compensation for the preceding calendar year may adopt a Savings Incentive Match for Employees (SIMPLE).

This type of plan may be suitable for a company seeking an alternative to a 401(k) plan, with fewer administrative requirements and low cost.

Not a deposit. Not FDIC insured. No Bank Guarantee. May lose value. Not insured by any federal government agency.