Retirement Services

Why an IRA?

An Individual Retirement Account provides you with an opportunity to control your retirement savings and future. IRAs are a great idea for everyone who is eligible and Community First National Bank offers IRA products that are just right for you.

If you are self-employed or your employer does not offer any type of retirement savings, then an IRA will help you supplement any government retirement that may be available for you. If you are not covered by a retirement plan, an IRA is one of the best ways to help you secure your financial future. Self-employed individuals may want to consider making SEP IRA contributions to build a retirement nest egg.

Even if you are covered at work by a retirement plan, an IRA is a good way for you to save additional funds for your retirement. Traditional IRAs may be tax-deductible depending on your adjusted gross income. The IRS has established new, higher income levels that allow more people to qualify for a tax deduction. In addition, if you are married, the joint adjusted gross income level has been set even higher when making a deductible contribution for a non-working spouse.

If your adjusted gross income is over the allowable levels for a tax-deductible contribution to a Traditional IRA, you may still qualify for a Roth IRA. You do not receive a tax deduction for making a Roth IRA contribution, but when you retire your Roth IRA Distributions can avoid income tax altogether. This means that the earnings in your Roth IRA are never exposed to income taxes. The most common way to qualify for a tax-free distribution from a Roth IRA is to be over 59 1/2 and have a Roth IRA for more than five years. If you meet these simple criteria, you will qualify for a tax-free distribution from your Roth IRA.

Traditional IRA

Build retirement assets by deferring taxes until retirement, when you are more likely to be in a lower income tax bracket. Take advantage of tax benefits today.

• Invest in a 12 month to 60 month CD
• Contributions may be deductible
• Earnings are tax deferred

Roth IRA

Unlike a traditional IRA, the Roth IRA allows your investment earnings to grow tax free. All contributions are after taxes. The Roth IRA provides a savings opportunity for individuals whose income exceeds the eligibility limitations of a traditional IRA.

• Invest in a 12 month to 60 month CD
• Contributions are non-deductible
• Earnings are tax free

Compare Traditional and Roth IRAs

Rollover IRAs

When retiring or changing jobs, Community First National Bank can help you rollover your retirement savings.

Rollover to Traditional IRA: A rollover is a transaction where funds in your employer-sponsored retirement plan are moved into a Traditional IRA. Rollovers were designed for people who are leaving a job or retiring and receiving money accumulated in a retirement plan. Eligible distributions from such plans may be rolled over directly into a Traditional IRA, tax-free.

For more information about IRA rollovers, call us at (785) 323-1111 to visit with our IRA specialists.

Coverdell Education Savings Account (CESA)

This account is an education assistance account established for the benefit of a child under the age of 18. The earnings on the contributions accumulate tax-free if used for a qualified educational expense:

• Invest in a 12 month to 60 month CD
• Contributions are non-deductible
• Earnings are tax-free if used for qualified education expense

Reminders

Keep your beneficiaries on your IRA up to date. Has there been a death, birth, or marriage in the family? If you don't remember who you named as beneficiary, please call us at (785) 323-1111 and we can look up your original IRA contract and tell you.

April 15th -- contribution deadlines for Traditional, Roth and Coverdell ESA