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Saving for retirement is an important goal for all of us. Fremont National Bank can help you prepare for your future through an Individual Retirement Account (IRA).
Individual Retirement Accounts are personal tax deferred savings plans authorized by the Federal Government. Your amount of coverage for your total retirement accounts are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). An IRA accrues tax deferred interest, and if you qualify, you may be able to deduct all or part of your yearly contributions from your federal income tax.
Increasing IRA Contribution Limits
Contribution limits were increased beginning 2002 giving individuals the opportunity to contribute more money to their Traditional and Roth IRAs. Also, for individuals age 50 and over, there is the opportunity to make "catch-up" contributions. With these "catch-up" contributions, individuals may exceed the standard contribution limit. Beginning in 2009, the contribution limits will be subject to cost of living adjustments (COLAs).
- Traditional IRA
These IRAs are available to anyone under the age of 70 1/2 with earned income within the Modified Adjusted Gross Income (MAGI),see MAGI chart.
- Education IRA
The Education IRA is not a retirement account at all. It is designed to help meet a child's higher education expenses.
- Roth IRA
A Roth IRA allows only nondeductible contributions but features tax-free (the term tax-free means free from federal income taxes) withdrawals for certain distribution reasons after a five-year time period.
- IRA Rollover
Provided you "rollover" your payout into an IRA Rollover account within 60 days of receiving a retirement fund payment, you may owe no current tax on the payout.
Fremont National Bank offers several investment options for your IRA. You may choose from a Certificate of Deposit, a two-year variable rate investment, a variable rate Insured Money Market account, or you may choose a Self-Directed Individual Retirement Account.
You can place part of your payout into long term investments for guaranteed maximum return over a fixed period of time, and part into investments with shorter maturity dates.
You can set up an IRA and a Rollover IRA at Fremont National Bank. Just visit one of our Personal Bankers for help in understanding the legal responsibilities and advantages of the Individual Retirement Account.
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