Individual Retirement Accounts

With all that is going on, it’s easy to forget about the future. Whether you’re planning for retirement or the purchase of your dream home, we make it easy to invest. We also offer a variable rate, 18-month IRA.

• Terms ranging from 6 months to 5 years
• Contribution may be tax deductible
• All earnings are tax deferred until a distribution is taken
• You have until April 15th of each year to open and fund a Traditional IRA for the prior tax year.
• Minimum of $100.00 to open
• Maximum annual contribution is limited to the lesser of $3,000.00 or 100% of compensation contribution limitations will increase till the year 2008). Age 50 and over may be eligible for additional catch-up contributions.

These IRA contributions are generally tax deductible, creating an opportunity for you to save for your future and today, by saving on taxes that you might otherwise pay. Plus your earnings grow tax deferred.

The eligibility requirements for a Traditional IRA are:

• The individual must be under the age of 70 1/2
• The individual must have earned compensation

The Roth IRA can help first-time home buyers save for a down payment. Contributions to a Roth IRA are not tax deductible, but withdrawals are generally tax-free, if:

• You don't begin withdrawals until at least five years after you establish the IRA, and
• You are at least age 59 ½, or use the funds for a first-time home purchase (withdrawal for this purpose are limited to a lifetime cap of $10,000).

#Withdrawals made prior to age 59 ½ may be subject to a 10% IRS early withdrawal penalty in addition to ordinary income taxes. The IRS 10% penalty does not apply if the equal periodic payments are taken over life expectancy, for at least five years, or upon attainment of age 59 ½, whichever is later, if the withdrawal is used for a first-time home purchase (lifetime of $10,000 per individual), qualified higher education expenses, certain medical expenses and certain other uses, or in the event of disability or death.

For Further information on tax deductions, consult your tax accountant.