IRA's - Individual Retirement Accounts

Traditional IRA: pre-tax contributions, taxable earnings and distributions

Ask a question, open IRA

  • You can deposit into an FDIC-insured certificate of deposit with terms of 1 to 5 years at fixed rates. CURRENT DEPOSIT RATES.     Financial calculators  
  • To make a contribution: Contact any DSB location. Annual contribution limit is $5,500 for tax year 2018. Depositor can make multiple contributions during a tax year until limit is achieved. Must have earned income; certain contribution restrictions based on adjusted gross income. Must not have reached age 70 1/2 by the end of the year.
  • Individuals age 50 and over can make catch-up contributions. Individual can make maximum IRA contribution plus contribute an additional $1,000 per tax year.
  • Contributions and interest paid are tax deferred. Distributions are treated as ordinary income and taxable.* (see below) 
  • You may qualify for a tax deduction if you are not an active participant in a retirement plan. Otherwise, phase-out rules apply.
  • Contribution deadline is the contributor's tax filing deadline (example: contributions for calendar year 2018 can be made until April 15, 2019).
  • To make a distribution: Contact any DSB location.
  • Anyone under age 70 1/2 with earned income is eligible. Cannot make contributions after age 70 1/2. Required distributions must begin by age 70 1/2.
  • Transfer of rollover funds and re-deposit within 60 days, once a year.
  • No set-up fee.
  • IRAs are FDIC-insured to $250,000 separately from any other deposits you may have at the same institution.
  • Electronic notice delivery (optional)

Roth IRA: post-tax contributions, untaxed earnings and distributions

The Roth IRA is a non-deductible account that features non-taxed earnings for certain distribution reasons after a five-year waiting period. In the long run, you'll accumulate your annual contributions, plus you'll save money in the end on your untaxed distributions. If you expect to be in the same or higher tax bracket when you retire, you'll benefit more from a Roth IRA than a traditional IRA.

  • You can deposit into an FDIC-insured certificate of deposit with terms of 1 to 5 years at fixed rates. CURRENT DEPOSIT RATES.   Financial calculators 
  • To make a contribution: Contact any DSB location. Annual contribution limit is $5,500 for tax year 2018. Must have earned income; certain contribution restrictions based on adjusted gross income. No age restrictions.
  • Individuals over the age of 50 can make catch-up contributions. Individual can make maximum IRA contribution plus contribute an additional $1,000 per tax year.
  • Contribution deadline is the contributor's tax filing deadline (example: contributions for calendar year 2018 can be made until April 15, 2019).
  • Contributions are post-tax: they are not tax deductible or tax deferred. Distributions are untaxed under certain guidelines.* (see below) 
  • You can contribute after age 70 1/2. Required distribution is not required at age 70 1/2.
  • To make a distribution: Contact any DSB location.
  • You can convert your existing Traditional IRA into a Roth IRA.
  • IRAs are FDIC-insured to $250,000 separately from any other deposits you may have at the same institution.
  • Electronic notice delivery (optional) 

Simplified Employee Pension (SEP) IRA

  • You can deposit into an FDIC-insured certificate of deposit with terms of 1 to 5 years at fixed rates.
  • For tax year 2018, contribution limit is the lesser of 25% of compensation or $55,000.
  • Contributions are not considered as income until distribution is taken, and therefore are tax-deferred.
  • Employer sets up age parameters. No discrimination is allowed.
  • Anyone under age 70 1/2 with earned income is eligible.
  • No set-up fee. 

Visit Rex Frazier or Deb Knouft at the Holton main bank about SEP IRAs.

*Tax laws and regulations change frequently, and their application can vary widely based on the specific facts and circumstances involved. If you have questions regarding accounting issues specifically related to your personal or business circumstances, you should consult with your own professional tax advisor, accountant, attorney, industry expert or professional association.