- Higher yielding investments at a guaranteed interest rate for term of deposit
- Flexible terms: 7 days to five years
- Low minimum deposit to open account and earn disclosed annual percentage yield
- Interest can compound quarterly (at maturity for account terms less than 3 months), or can be transferred monthly, or quarterly via direct deposit to your First State Bank checking or savings account or by check.
- Automatically renewable at maturity with 10 day grace period
- FDIC insured up to $100,000 (www.fdic.com )
- A penalty may be imposed for early withdrawal
We offer a variety of IRA solutions to help you meet your retirement planning needs. Ask about Roth, Traditional, and the most recent Educational IRAs. We offer 1year to 5year CD's as investment options for your IRA account. Given the complex rules and potential tax implications associated with retirement accounts, it's advisable to consult with an accountant or attorney for more details.
The traditional IRA first became available in 1975 to encourage people to save for their retirement and to provide for beneficiaries upon death. Higher contribution limits and greater flexibility were added with the implementation of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001. If deferring taxes on part of your income is your tax strategy, a Traditional IRA may be right for you.
The Roth IRA was first made available on January 1, 1998 . Contributions are made with after-tax dollars and earnings are free from taxes and IRA penalties if certain conditions are met. If your income level is too high for a Traditional IRA, a Roth IRA may be just the thing for you.
In July 2001, President Bush signed legislation that formally renamed the Education IRA the Coverdell Education Savings Account (CESA). This is named after the late Senator Paul Coverdell, who championed the creation of the Education IRA.
The CESA is a tax-favored savings tool created to assist in saving for an individual's education expenses. Distributions for qualified education expenses are not subject to federal income tax or a 10 percent penalty tax.
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