Retirement Planning

IRAs offer unique benefits, tax advantages and eligibility requirements for long-term individual retirement savings.  First Bank offers Traditional IRAs, Roth IRAs, Rollover IRAs, SEP IRAs, and SIMPLE IRAs. Investment of IRA funds are generally in a First Bank IRA Time Deposit Account.

Individual Retirement Accounts (IRAs)

Traditional IRA

You can save on your present taxes with a Traditional Individual Retirement Account, by deducting what qualified contributions from your taxable income. Most Americans can deduct all or part of their IRA contributions from current income taxes. The deductible amount depends on your income, marital status and whether you're an active participant in an employer sponsored plan as defined by the Internal Revenue Service. 

With a Traditional Individual Retirement Account, you also defer taxes by putting them off until you retire, when you may be in a lower tax bracket. The chart below shows you how much you may be able save each year. You may want to consult your tax advisor to review your particular situation on the tax deductible status of an IRA. Or for more general information, you can speak to one our IRA specialists. But, 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. 
 

IRA Rollover

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 may find yourself in a tax bind, unless you roll over 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. 
 

Roth IRA

The Roth IRA is a nondeductible account that features tax-free withdrawals for certain distribution reasons after a five-year holding period. If you have a long period of time before retirement, you may be interested in this retirement plan where interest can be tax-free instead of tax-deferred. 

Contact us for a brochure with further details, such as the limitations on modified adjusted gross income to be eligible for a Roth IRA and the definition of a qualified distribution. 

 

FAQs from the IRS regarding Traditional IRAs

FAQs from the IRS regarding SEP IRAs

FAQs from the IRS regarding SIMPLE IRAs

 

Additional fees may apply to all the above accounts.  Read the Truth-In-Savings disclosure applicable to that account type before opening the account for additional fees.  Also, you should refer to our "Important Information About Your Deposit Account - Terms and Conditions" for other information about the account.