Retirement Choices – Different Types for Different Needs
| IRA Options |
Features |
Contributions |
Who benefits? |
| Traditional IRA |
Tax sheltered retirement option that enables you to defer
taxes on your earnings until you withdraw them. Contributions
may be tax deductible. |
$5,000 per year maximum |
People who expect to be in a lower tax bracket when they retire.
People who are looking for tax deductions and tax-deductible contributions. |
| Roth IRA |
Earnings are tax-exempt as opposed to up front deductions, allowing principle to build up quickly.
Withdrawals are tax-free.
No mandatory withdrawal rules. |
$5,000 per year maximum |
People who are a long way from retiring and expect to be in
the same or higher tax bracket at retirement.
People who are expecting to be earning more at retirement. |
| Coverdell Education Savings Account (formerly known as Educational IRA) |
Contributions are tax free, but not tax deductible. Designed
to help save for educational costs. |
$2,000 per year maximum |
People interested in saving for a child's education. |
Farm Bureau Bank offers both CD and Money Market
IRAs – which one is right for you?
The CD IRA is a better plan for the wage earner that is able to make a lump contribution. If you are ready to make a concerted effort at saving for retirement, the CD IRA is for lump sum contributions and rollovers. It also offers fixed rates & terms.
- $1,000 initial deposit
- FDIC insured
- All the benefits and security of a CD, with
the tax advantages of an IRA
- All CD terms available
- Step-Up option available on CD IRAs that allows a one-time rate increase during the life of the CD term. Give yourself the room to grow your interest.
The Money Market IRA is a better plan for wage earners interested in making smaller, periodic contributions. The Money Market IRA is also an attractive option for accessing your IRA funds if you are eligible for distributions.
- $250 initial deposit
- Allows multiple contributions
- Checks available for account holders eligible for distributions
- Variable interest rate is tiered based on balance
- E-Option available for additional earnings
- $25 penalty for closures not rolled over into
another Farm Bureau Bank IRA
- Money Market withdrawal restrictions apply
As with all IRAs, Federal withdrawal restrictions apply and a penalty will be imposed if there is an early withdrawal from the account.
|
 |
Equal Housing Lender. Farm Bureau Bank is an Equal Opportunity Employer.