IRAs
Individual Retirement Accounts (IRA's) are special savings accounts that allow individuals to save money for retirement while deferring taxes on the interest income until the funds are withdrawn. By saving money today, you can assure yourself of a secure retirement income. First, consult your tax advisor for details. Then let Community Bank put you on the road to a financially secure retirement.
THE TRADITIONAL IRA
In 2001, new tax laws made it possible for IRA contributions to increase beginning in the tax year 2002. The new contribution limit for each year is outlined in the chart below. You may contribute the limit for that particular year or 100% of compensation; whichever is less.
THE ROTH IRA
You can contribute to a Roth IRA if you have earned income AND your modified adjusted gross income (MAGI) does not exceed certain limits. With a Roth IRA, your contributions are not tax deductible, but your interest and withdrawals from the account are completely tax-free after a five-year holding period. There is also no age restriction on contributions to a Roth IRA. See our IRA experts for details.
EGTRRA law changes allow individuals to contribute a specific annual amount or 100% of compensation, whichever is less. Special "catch up" contributions for those 50 and over were established in 2002. See the chart below.
Also effective beginning January 1, 2002, catch-up contributions are possible for IRA holders who have attained the age of 50 before the close of the taxable year. Catch up contributions may also be made according to the chart below.
|
Tax Year |
Contribution Limit |
Age 50 and Over Limit |
|
2002-2004 |
$3,000 |
$3,500 |
|
2005 |
$4,000 |
$4,500 |
|
2006-2007 |
$4,000 |
$5,000 |
|
2008 |
$5,000 |
$6,000 |
|
2009 and After |
$5,000 + COLA |
$6,000 + COLA |
FEATURES OF COMMUNITY BANK IRAs
- No start up fees
- No transfer or maintenance fees
- Variable Rate Savings Account with a competitive rate and no minimum to start
- Fixed rate CDs available
Call or contact us for more information on any of Community Bank's IRA investment products. It's never too soon to begin saving for your retirement.
Community Bank does not accept Individual Retirement Accounts from outside the tri-state area, which includes Iowa, Nebraska, and South Dakota.
BEFORE INVESTING, PLEASE CONSULT YOUR TAX ADVISOR.
