IRA's

An Individual Retirement Account or IRA, is designed to allow people the opportunity to invest money for their retirement while receiving tax saving benefits. Farmers State Bank of Camp Point offers customers two of the most popular IRA’s available, Traditional and ROTH. Both follow some of the same guidelines.

• Minimum deposit of $25.00 to open

• Maximum contribution in one year (set by U.S. government)

• Various fixed rate maturity options from 18 months to 4 years.

• Interest compounded and credited quarterly

• Investments are automatically renewable

• Separately Insured by FDIC with bank assets

• Withdrawals before 59 ½ may be subject to additional tax penalty

The major difference between the two IRA’s is the manner in which you receive your tax savings…

A Traditional IRA may offer investors an immediate tax advantage with a tax deduction, in addition the money contributed to this type of IRA is pre-tax and grows TAX-DEFERRED until withdrawals are made when earning are taxed as ordinary income. Also at the age of 70 ½ percentage withdrawals are required.

A ROTH IRA investment, on the other hand, is made with after tax dollars so there is no immediate tax advantage, but your money and future earnings grow TAX-FREE. Also money in a Roth IRA is not subject to withdrawal requirements.

If you are interested in investing in a safe and secure Farmers State Bank of Camp Point IRA. Please contact a bank representative so all the details of an IRA investment can be fully explained.

  2009 Farmers State Bank of Camp Point
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