First State Bank of St. Joseph
A Tradition of Community Banking
Individual Retirement Accounts (IRA)
IRA’s are a great way to save for retirement. It’s a personal savings
plan that allows you to set aside money for retirement, while offering you
unique tax advantages. We offer both Traditional, Roth IRA’s, and CESA's that
are invested in FDIC insured CD's.
Traditional IRA
Distributions are taxed, but earnings are not taxed until distributed
Annual distributions required after age 70 ½
Must have earned income / compensation to participate except for
spousal IRA’s
Contributions may be fully or partially deductible - consult your
tax advisor
Roth IRA
Non-deductible contributions
Tax free distributions if qualifications are met
May contribute annually after age 70 ½
Must have earned income / compensation
Spouse IRA available
Potential tax savings
SEP (Simplified Employee Pension) IRA
Employer sponsored retirement plan for the self employed
Requirements:
Minimum balance to open an account - $1,000.00
Benefits:
No Service charge or annual fee
Easy way to save for retirement
Cost:
Early withdrawal penalty
Consult with your tax or legal professional for
guidance
