A Traditional IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement.
These advantages include the potential for tax-deductible contributions, the potential for a tax credit, and the potential for tax-deferred growth. Contact one of Customer Service Representatives for terms, rate, and additional information.
- FNB Bank offers a variety of IRA terms from 12 months to 60 months.
- Minimum deposits range from $100-$1000.
- If you earned income during the year and you will not reach age 70½ by the end of the year, you can open a Traditional IRA.
- If you are under 50 years of age, the annual contribution limit for tax year 2009 is $5000.
- If you are 50 years or older, the annual contribution limit for tax year 2009 is $6000.
- You can open a Traditional IRA regardless if you are covered by another retirement plan or not.
- The accumulated interest is not taxed until the funds are withdrawn.
- When you reach the age of 59½, you can withdraw the funds penalty-free.
- Penalty-free withdrawals may be used to pay for educational expenses.