Secure Your Future With An Individual Retirement Account
Is an IRA Right For You? Call one of our customer service representatives in Tyndall at 605-589-3313, in Chancellor at 605-647-2228, or in Heron Lake at 507-793-2334 to find out.
You might also be able to save on your present taxes with a Traditional Individual Retirement Account, by deducting your qualified contributions from your taxable income. Many Americans can deduct all or part of their IRA contributions from current income taxes. The deductible amount depends on your income, age, marital status and whether you’re an active participant in an employer sponsored plan as defined by the Internal Revenue Service. If neither you or your spouse is covered by a work plan your deduction would be allowed in full.
With a Traditional Individual Retirement Account, you can contribute annually and defer income taxes on the contribution and earnings until the funds are withdrawn from the account.* You may want to consult your tax advisor to review the tax deductible status of a Traditional IRA. Regardless of the amount you’ll be able to save now on taxes, an IRA is a smart way for you to save for a secure retirement.
ROTH Individual Retirement Accounts are also available. Annual contributions for ROTH IRA accounts are taxed prior to investment, so no tax is incurred upon withdrawal. Roth IRA’s do not require distributions based on age. Earnings may be withdrawn tax & penalty free, pertinent to a seasoning period and age requirement.
If You’re Changing Employers, An IRA Rollover Makes Sense. If you are retiring or changing jobs and anticipate withdrawing money from your employer’s retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan. You can ask your employer to arrange for a “direct rollover” of your money into a new IRA account with us, or you can do it yourself with an IRA-to-IRA rollover.
You must complete the rollover within 60 days from the date you receive the assets from your old IRA in order to qualify and not pay the mandatory 20% withholding and possibly other penalties as well. For more information about IRA Rollovers or opening a new IRA just give us a call in Tyndall at 605-589-3313 or in Chancllor at 605-647-2228.
* Substantial penalty for early withdrawal.