Don't limit your future, turn your retirement dreams into reality.
At First Bank Hampton, we try to provide you with several options and opportunities to save as part of your retirement plan or for future educational needs. We offer Savings accounts, Time Certificates of Deposit, and IRAs to help you prepare today to ensure you have the income you need for a lifetime.
Choose from our three types of IRAs:
Traditional IRA: This IRA is designed for individuals who want to save tax-deferred dollars and have their annual contributions to be tax-deductible. ¹
- Owner must have earned income and be under the age of 72 to make contributions.
- Earning grow tax deferred.
- Distributions are generally taxable.
- Distributions before age 59 ½ are subject to penalty tax of 10%, unless distribution penalty tax exception applies.
- Required minimum distribution (RMD) must begin at age 72².
- RMD is the minimum amount you must take each year. You can take more than the RMD amount. (Taking just the RMD may help you stretch your IRA savings throughout your life expectancy)
- RMDs generally are taxable to you and must be included in your income for the year of the distribution.
- However, penalty free withdrawals may be made at any time for college expenses or the purchase of a first home. Bank penalties may apply for early withdrawals.
Roth IRA: The major benefit of a Roth IRA is tax-free earnings growth. Although contributions to the Roth IRA are not tax-deductible, the contributions can be removed at any time without federal taxes or penalties. ¹
- Earning grow tax deferred.
- Earning can be distributed tax free if the Roth IRA owner contributed to the Roth IRA at least 5 years and is age 59 ½ or older, disabled, deceased, or qualifies as a first-time homeowner³.
- You are not required to receive distributions at age 70 ½ and in most cases, you can pass your Roth assets to your heirs free of federal income taxes.
SEP IRA: This low-cost retirement plan is designed for small businesses and the self-employed business owner. This would include sole proprietors, partnerships, and corporations.
- The SEP plan enables you to make discretionary, tax-deductible contributions for employers and eligible employees.
- The employer may choose to make the plan less restrictive.
- Earnings and contributions are tax deferred.
Check with your financial adviser or tax consultant for more details about the IRA that's best for you and your tax-deductibility status. For more information, or to receive a description of rates, fees, and limitations, call 641-456-4793 and ask to speak with IRA representative.
Individuals may also transfer or roll over eligible assets from qualified retirement plans to Traditional or Roth IRAs.
We also offer Certificate of Time Deposits.
With a variety of maturities to choose from, our Time Deposits conform to your needs. They offer guaranteed rates, insured safety, and peace of mind. Bank penalties may apply for early withdrawals.
Other specialty savings offerings:
- Health Savings Account (HSA)
- Coverdell Education Savings Account
¹ Bank penalties may apply for early withdrawals. Withdrawal of earning is tax-free if certain distributions are meet.
² Age 72 is based off 2020 IRA requirements
³$10,000 lifetime maximum
² Age 72 is based off 2020 IRA requirements
³$10,000 lifetime maximum
