Traditional IRA

A Traditional IRA is easy to maintain, and typically offers two important tax advantages. If eligible, the possibility exists to deduct the total annual Traditional IRA contributions on yearly federal income tax returns, and every penny of the earnings in a Traditional IRA is 100% free from federal income tax until withdrawn from the account.

Tax-deferred money grows quicker, so money will grow faster in a Traditional IRA!

Requirements

• Minimum deposit to open account is $100.
• Additional deposits must be a minimum of $50.

Features

• Interest will be compounded semiannually.
• Interest may be withdrawn at anytime during the term of crediting after it is credited to a bank account. However, customer may be subject to IRS penalties.
• Principal withdrawn before maturity, is subject to penalties equal to six months interest on the amount withdrawn, along with any IRS penalty.
• This account automatically renews at maturity.
• Account holders age 59 1/2 may adjust to a higher rate once in a calendar year.
• Our rates are higher per term than most area banks and lower amounts are needed on deposit to earn interest.
• Deposits can be made at anytime into an existing IRA.

Restrictions/Exceptions/Distributions

• Distributions after the age of 59 1/2.
• Distributions made to a designated beneficiary or the individuals estate upon death.
• Distributions attributable to being disabled.
• Qualified first time home buyer distributions.
• A 10% IRS premature distribution penalty applies to unqualified withdrawals. Qualified withdrawals are:
  • Equal periodic payments
  • Medical expenses that exceed 7.5% of your Adjusted Gross income.
  • Health care insurance
  • Higher education expenses
• Distributions for reasons of death, disability, first-time home purchase, age 59 1/2.