| Roth IRA Advantages |
- You cannot deduct contributions to a Roth IRA, but if you satisfy the requirements, qualified distributions are tax free.
- Contributions can be made to your Roth IRA after you reach 70 ½ and you can leave amounts in your Roth IRA as long as you live.
Roth IRA Vs. a Traditional IRA?. The two are compared in a table in IRS Pub. 590.
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| IRS Limitations |
- Contributions can be made to your Roth IRA for a year ( Plan Year ) at any time during the year or by the due date for filing your return for that year, not including extensions.
- Contributions can be made to your Roth IRA for a year ( Plan Year ) at any time during the year or by the due date for filing your return for that year, not including extensions.
- The IRS limits the most that could be contributed to your Roth IRA for a Plan Year and the IRS determines this amount annually. The contribution limit for Roth IRAs also depends on whether contributions are made only to Roth IRAs or to both Traditional IRAs and Roth IRAs. The contribution limit may be further limited by your adjusted gross income and filing status.
- IRS 59 ½ Rule. Distributions before you are age 59 ½ are called early distributions. Generally, if you are under age 59 ½ , you must pay a 10% additional tax on the distribution of any assets (money or other property) from your Roth IRA. The 10% additional tax applies to the part of the distribution that you have to include in gross income. It is in addition to any regular income tax on that amount. There are a number of exceptions (see IRS Pub. 590) that permit early distributions from an IRA Plan without the IRS tax penalty or other tax requirements such as when you use the distributions to buy, build, or rebuild a first home.
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| Account-Specific Limitations |
- Plan contributions are accepted within the time frame determined by the IRS, and are deposited into one or more qualified IRA Certificate of Deposit accounts of your choosing. Once deposited, the funds must remain in the account until the maturity date to avoid a Bank imposed penalty. This is different than IRS limitations requiring funds to remain in a retirement Plan.
- We impose a penalty if you withdraw any of the Principal before the maturity date. This penalty is equal to the interest or dividends earned, or that could have been earned, depending on the Term of the account. This penalty is separate from any IRS penalty, however, we will waive the bank penalty if the withdrawal is made under the following IRS 59 ½ Rule exceptions: if the accountholder is disabled (as defined in 26 U.S.C. Section 72(m)(7); the withdrawal is following the death or adjudication of incompetence of the accountholder; the withdrawal is a period certain payment distribution to the accountholder pursuant to the benefit election as detailed in the Trust Agreement.
- This account will automatically renew at initial and subsequent maturities to the same term at the interest rate the Bank is offering at the time of renewal for Time accounts of similar term.
- You have a "Grace Period" following the initial maturity date or the maturity date of any renewal Term during which time no penalty will be charged or additional earnings paid, during which you may make: additional deposits to Principal, provided they are within IRS contribution limitations; Rollover the account into another IRS eligible investment without the imposition of a Bank penalty; or change the Term. The Bank is not responsible for accountholder's failure to adhere to IRS limitations and any resulting IRS consequences.
- The Bank reserves the Right not to Renew a Certificate of Deposit to which you have made contributions, in which case it would provide the accountholder written Notice that it will convert the account at maturity to: a Time Deposit of another Term at the interest rate offered on these accounts.
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| 24/7 Funds Access |
| Telephone Banking - Inquiry ONLY |
FREE |
| Interest and the Annual Percentage Yield (APY) |
The interest rate on this account is fixed (remains the same) for the term of the account (until it matures) at the rate published in our current rate sheet at time of account opening.
At initial maturity and subsequent maturities, the rate will be reset to the rate published in the current rate sheet at time of renewal for the standard term account this account rolls over to and will remain fixed until that term's maturity. | Current Rates |
Minimum Daily Balance to Obtain the APY
The APY assumes interest will remain on deposit until maturity. A withdrawal of interest will reduce earnings.
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500.00
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Minimum Daily Principal balance required to accrue
Interest accrues daily. We use the daily balance method to calculate interest on your account, which applies a daily periodic rate to the Principal in the account each day.
Interest will not accrue on those days where the minimum balance falls below the required minimum balance to accrue.
Interest begins to accrue on the business day you deposit non-cash items (for example, checks).
If you close your account before interested is credited, you will forfeit the interest accrued for that time period. |
500.00 |
Frequency in which Interest compounds and is credited
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Monthly |
| Account Features |
Minimum Deposit to Open Account.
You may not make additional Deposits to the account during the Term of the account.
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500.00 |
Grace Period for Bank's Penalty Waiver
Account Term
6 months or more |
7 days
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Penalty for Early Withdrawal of Principal
Account Term
6 Months to 11 Months
12 Months to 35 Months
36 Months to 59 Months
60 Months or greater
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3 Month's interest
6 Month's interest
9 Month's interest
12 Month's interest
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| This Account is governed by the terms disclosed above and the following:
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IRA Trust Agreement and Application to Participate. Provided to New IRA Plans.
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General Terms for Deposit Accounts
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