An Individual Retirement Account (IRA) is a type of trust. It is a savings plan designed to supplement retirement income from Social Security and pension plans.

• The maximum yearly contribution is $3,000.00 for those less than 50 years of age; $3,500.00 for those over 50.

• Regular IRA: If both parties have an earned income, each spouse may establish an IRA and calculate their maximum contributions separately even though they file a joint tax return.

• Spousal IRA: If a married couple has only one wage earner, he or she can contribute both to a regular IRA and to a separate "spousal" IRA, up to a combined annual total of $6,000.00 for those less than 50 years of age; $7,000.00 for those over 50.

• Distribution: A customer can start withdrawing money, without a penalty, from an IRA as early as age 59 ½, but must begin making mandatory withdrawals during the year in which he or she reaches age 70 ½.

• Distributions may be received in one of 3 ways:
1. Lump sum payment.
1. Periodic payments over one’s life expectancy.
2. Periodic payments over the life expectancy of husband and wife.

If death occurs after distributions have begun, then payments to the beneficiary may continue over the same period of time or over a more rapid period as under the method used prior to death. If the IRA depositor dies and distributions have not begun, the depositor’s interest must generally be distributed within five (5) years. However, if the surviving spouse is the beneficiary, the funds may be rolled over into an IRA in the surviving spouse’s name.

Penalty for Early Withdrawal (prior to age 59 ½): Current IRA regulations impose a 10% IRA penalty, in addition to regular income taxes, if funds are withdrawn from a person’s IRA before 59 ½ years of age. There is a forfeiture of three (3) months interest if individual deposits are withdrawn before they mature, providing the owner has not reached the age of 59 ½ or become permanently disabled.

• Rates are competitive.

• May be FDIC insured for up to $100,000.00.

REQUIREMENTS: $500.00 minimum to open an IRA.

Certificates of Deposit are generally available from three (3) months to five (5) years.

• Certificates of Deposit can be issued as an automatic renewal.

• Customers select the maturity, which best fits, their needs.

• Interest rate is locked in for the term.

• No maintenance fee.

• May be insured by FDIC for up to $100,000.00.