Individual Retirement (IRAs)

1st National Bank – Growin’ Wisconsin since 1876.

 

Start planning for a very relaxing future.

Get a head start with an IRA from 1st National Bank. Just one simple action today gives you a great start towards a very relaxing future. The low minimum deposit to open, just $10, makes taking the first step incredibly easy.

Choose from our Traditional and Roth options and benefit from the tax advantages each plan provides. So with every deposit made, just think of all the time you’re buying to relax during retirement.


Individual Retirement Accounts (IRAs)-at-a-Glance

Tax-advantaged retirement savings

  • Choose from a Roth or Traditional IRA, both which have tax advantages
    • Traditional IRA provides potential tax relief today
    • Roth IRA has the potential for most tax benefit at the time of retirement
    • Discuss your specific tax situation with your tax advisor

Various savings options

  • Can purchase a CD within an IRA

No setup fees and low opening deposit

  • No monthly or annual maintenance fees
  • $10 minimum deposit to open


 

IRA Eligibility Rules*


Is there an age limit for contributions?

Traditional:

As long as you have earned income (or a spouse with earned income, if filing jointly), you may contribute until the year you turn age 70 ½.

Roth:

There is no age limit as long as you have earned income (or a spouse with earned income, if filing jointly.)

Are there income limits for contributions?

Traditional:

There are no income limits for the amount you can contribute; however, your income limits may affect the deductibility of your IRA contribution (if you or your spouse are covered by a retirement plan at work).

Roth:

The amount you may contribute to a Roth depends on your tax filing status and your modified adjusted gross income (MAGI ).

Your contribution can be reduced or “phased out” as your MAGI approaches the upper limits of the applicable phase-out ranges.


View Phase-out Ranges

2016
Tax-Filing Status
Single $117,000-$132,000
Married, Filing Jointly $184,000-$194,000
Married, Filing Separately $0-$10,000

IRA Contribution Rules*

What is the maximum I can contribute to an IRA?

Traditional:

You may contribute the yearly maximum contribution amount or 100% of your earned income, whichever is less.  For the 2016 tax year, the maximum you may contribute is $5,500 (under age 50) or $6,500 (over age 50).

Roth:

You may contribute the yearly maximum contribution amount or 100% of your earned income, whichever is less.  For the 2016 tax year, the maximum you may contribute is $5,500 (under age 50) or $6,500 (over age 50), as long as you meet the MAGI requirements.  Your contribution can be reduced or “phased out” as your MAGI approaches the upper limits of the applicable phase-out ranges.


View Phase-out Ranges

2016
Tax-Filing Status
Single $117,000-$132,000
Married, Filing Jointly $184,000-$194,000
Married, Filing Separately $0-$10,000

Is my contribution deductible?

Traditional:

Every individual’s situation is different.  Please consult a tax advisor to determine whether your contributions are deductible.

Roth:

No, contributions to Roth IRAs are always after-tax contributions.

When is the deadline for making an IRA contribution?

Traditional and Roth:

A current tax year contribution can occur at any time.  Prior tax year contributions may be made up until your tax-filing deadline (generally April 15).   If you are making a “prior” year contribution, please contact a Personal Banker for specific instructions.

What type of account do I put my IRA money in?

Traditional and Roth:

You may purchase a CD within an IRA.  Otherwise, contact a Personal Banker for other retirement savings options.

How much do I need to open a 1st National Bank IRA?

Traditional and Roth:

We offer a variety of savings options—the opening balances range from $10 on up.

IRA Distribution Rules*

When can I withdraw money from my IRA?

Traditional:

Generally, there is a 10% federal penalty on withdrawals before age 59 ½ (exceptions may apply.)  Please talk to a tax advisor regarding exceptions to the early distribution penalty.  Your required minimum distributions must begin by April 1 of the year following the year you turn age 70 ½.*

Roth:

You may withdraw your original contributions at any time, penalty-free and tax-free.  Your earnings may be subject to a 10% federal penalty tax before age 59 ½.  Please talk to a tax advisor regarding exceptions to the early distribution penalty.  Roth IRAs have no required minimum distributions.

Are my withdrawals taxable?

Traditional:

Please consult a tax advisor for your specific situation.

Roth:

 

*Please consult a tax advisor for your specific situation.


Ready to plan for a relaxing future?