HOME

Internet Banking Info

ATM / Check Card

Business Products

Personal Products

Deposit Rates

Locations / Staff

Directors / Stock

History / Mission

Web Links
IRA, ROTH & SEP ACCOUNTS
ABA Roth Tax Savings Calculator

 

Traditional IRA Roth IRA

QUALIFICATIONS

Must have earned income and not have reached age 70 1/2 by the end of the year. Must have earned income.   There are no age restrictions.

MAXIMUM
CONTRIBUTIONS  *

2012 - $5,000
2013 - $5,500
(SIMPLE IRA - $12,000)
2012 - $5,000
2013 - $5,500

CATCH-UP
(50+ OVER)

 $1,000
(SIMPLE IRA - $2,500)
$1,000

TAX STATUS OF
EARNINGS

Tax-deferred until withdrawal Not taxed.  Earnings grow tax-free.
If you don't have a workplace retirement plan, such as a 401(k), you can deduct contributions from federal and state income taxes. If you have a 401(k) or other workplace retirement plan, you may be able to deduct a portion depending on your income. In 2013 the amount you can deduct is reduced or phased out for individuals with modified gross incomes of between $59.000 and $69.000, or married couples filing jointly with modified gross incomes of between $95,000 and $115,000. If you are not covered by a workplace retirement plan but your spouse is, the deduction is reduced between $178,000 and $188,000.
TAX DEDUCTION Yes.  Contributions up to the limit are fully tax deductible if you are not an active participant in a retirement plan.  Otherwise phase-out rules apply. No.   These are after-tax dollars.
IRS PENALTIES FOR
EARLY WITHDRAWAL

None if:

  • Over 59 1/2
  • Death or disability
  • Qualified medical expense
  • Certain health insurance
  • Higher education expenses
  • 1st time home purchase (up to $10,000)
  • Due to IRS levy
  • Periodic payments

None if made after a
 5-year period and:

  • Over 59 1/2
  • Death or disability
  • Qualified medical expense
  • Certain health insurance
  • Higher education expenses
  • 1st time home purchase (up to $10,000)
  • Due to IRS levy
REQUIRED DISTRIBUTION Must begin by April following year participant turns 70 1/2 Only after death of participant
CONTRIBUTIONS AFTER
AGE 70 1/2
Not allowed Allowed

 *  To be adjusted annually for inflation in $500 increments. 

Simplified Employee Pension - SEP Accounts
If your employer chooses to set up SEP accounts for their employees, then they may select savings accounts or time deposit accounts.