Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

Summary

The retirement you envision in your head and the one you experience don't have to differ — not with the help of an IRA plan from First State Bank. We offer both traditional and Roth options, each with different associated tax advantages.

There are no setup fees or monthly maintenance fees to worry about, just interest above standard savings to be made. Whether your dream retirement includes time with rambunctious grandkids or quiet time on the fishing pier — whatever it is, we want our well-deserving customers to have that experience. Work toward it with an FSB IRA today.

Account Details

  • Tax-advantaged retirement savings*
  • Competitive interest above standard savings rates
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance charges
  • $5,500 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase CDs
  • Minimum deposit to open depends on the selected term

*Consult a tax adviser.


Traditional vs Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 ½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70 ½

Roth IRA

  • Income limits to be eligible to open Roth IRA***
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal*
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals on interest can begin at age 59 ½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

*Subject to some minimal conditions. Consult a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***Consult a tax advisor.