IRA Savings Account

IRA Savings Account

• An Individual Retirement Account can provide a strong foundation to help you build toward your financial future. Let Farmers State Bank help you with your IRA rollovers and transfers too!
• Interest compounded and credited to account quarterly
• Closing fee of $25 will be charged for closing this account

There are two types of IRA Savings Accounts:

		Traditional IRA	Roth IRA
Eligibility Requirements	Minimum Age	No IRS minimum age restriction.	No IRS minimum age restriction.
	Maximum Age		No maximum age restriction.
	Income	You or your spouse must have earned income.	You or your spouse must have earned income.
Contributions	Deductibility	May receive tax deduction.	No tax deduction.
	Maximum Contribution	$6,500 plus an additional $1,000 if 50 years of age or older by end of calendar year.	$6,500 plus an additional $1,000 if 50 years of age or older by end of calendar year.
	Deadline
	Before Age 59.5	10% early distribution penalty unless exception applies. Taxed as ordinary income.	10% early distribution penalty generally applies to non-qualified distributions of earnings unless exception applies.
Distributions	Annual Mandatory Minimum Distribution (RMD)	RMD mandatory beginning April 1, following the year in which you become 73 years of age. Taxed as ordinary income.	No RMD.
	Qualified	Taxed as ordinary income, no penalty applies.	Tax-free distribution for certain situations after a 5 year mandatory waiting period.
	Nonqualified	10% early distribution penalty unless exception applies. Taxed as ordinary income.	Earnings are taxed and generally subject to a 10% penalty unless exception applies.