With rising concerns about the future state of Social Security, more individuals are looking for new ways to prepare for their retirement. Recent modifications to Individual Retirement Accounts (IRAs) allow even more people to benefit from these savings plans.

Benefits to IRAs
Planning now and saving regularly are essential steps toward creating a secure financial future for retirement. IRAs can be an important part of your retirement savings strategy, and they can offer a number of advantages.

• Security - By contributing to an IRA, you are taking an important step toward a secure financial future. Plus, most IRA plans are FDIC insured to $250,000.
• Tax Deferred Benefits - You may receive tax deferred benefits on your IRA if you meet income eligibility or qualified distribution requirements.*
• Flexibility - Since you are not required to make an IRA contribution, you have the flexibility to decide whether or not you want to contribute each year.
• Accessibility - Some retirement plans only allow distribution of funds at certain times. With your IRA, you may withdraw funds whenever you wish.**

IRA Plan Options
Since people plan for retirement differently, there are several IRA options to help savers meet their investment goals. First Banking Center offers Traditional, Spousal, Roth and SEPs (Simplified Employee Pension).

And if you are looking for more IRA flexibility, we can also set up a plan for you to automatically transfer funds on a regular basis from a First Banking Center savings or checking account to one of the IRA plans we offer.

• A variety of terms available
• Early withdrawal penalty may apply if made prior to age 59½
• FDIC insured
• $100 initial opening deposit requirement for IRA Money Market Savings; $250 initial opening deposit requirement for IRA CD

Traditional IRA
If you are under age 70½ and have earned income from employment, you may contribute the lesser of 100% of compensation or the maximum dollar limit.***

Receive a 100% deduction on your annual contribution if you don't receive benefits under an employer's retirement plan. You can still contribute to a Traditional IRA when receiving employer retirement benefits, but IRA deductibility is gradually phased out above Adjusted Gross Income (AGI) levels.***

Spousal IRA
Spouses who do not work outside the home may contribute annually to an IRA even if a working spouse participates in a pension plan.***

Roth IRA
Invest your after-tax dollars and watch the funds grow tax-deferred with the Roth IRA. The greatest benefit is you can withdraw your principal and earnings tax-free if you satisfy a five-year holding period beginning from the first day of the taxable year for which the contribution is deemed to be made and meet certain requirements.

An individual may contribute the lesser of 100% of compensation or maximum dollar limit and is gradually phased out above specified Adjusted Gross Income (AGI) levels.

Contributions may be made even after an individual attains age 70½.

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Account pricing/activity limits may vary in certain locations. Please call your nearest branch for details.
Contact a Personal Banker for more information on IRAs or see our Personal Fee Schedule for information on service fees.
Current interest rates are available in the bank lobby and are subject to change without notice. They are solely determined by the bank.
*Refer to a tax consultant on deferment eligibility.
**For Traditional and Roth IRAs: Distributions prior to age 59½ may be subject to a 10% IRS penalty tax for early withdrawal. Substantial penalties may be assessed by the bank for early withdrawal.
***Refer to a tax consultant on contribution deductibility.