IRA (Individual Retirement Accounts)
It’s never too soon to start planning for retirement and you’ll see your savings grow much faster with a retirement account that earns tax-deferred interest. Work with one of our knowledgeable and experienced customer service representatives to help you choose the IRA that’s right for you. First Peoples Bank of Tennessee offers CDs for your IRA investment opportunities, which are insured up to the maximum amount allowed by the Federal Deposit Insurance Corporation.
Traditional IRA
A traditional IRA (An Individual Retirement Account other than a ROTH IRA, SIMPLE IRA or EDUCATION IRA) is a special tax-deferred savings plan authorized by the Federal Government to encourage you to accumulate money for retirement. All the earnings you accumulate in your IRA remain tax deferred until you make withdrawals from the account.
Roth IRA
A Roth IRA is an individual retirement account to which participants are able to make annual non-deductible contributions. Unlike a traditional IRA in which your earnings are tax-deferred, Roth IRA earnings can be tax free.
Coverdell Educational Savings Account
Formerly known as Education IRAs, Coverdell Education Savings Accounts are an ideal way for you to begin saving money to help a child, grandchild, or any young person you know pay for higher education expenses down the road. Contributions to a Coverdell Education Savings Account are not tax-deductible, but distributions used to pay for the qualified education costs of the named beneficiary are generally tax free.
“Catch-Up” Contributions
Through tax year 2005, those of you who are 50 and over can save more by adding $500 to the regular annual contribution limit for traditional and Roth IRAs. And for tax years 2006 through 2010, your catch up doubles to $1,000. Catch up contributions can be made on top of the current IRA limit. Contact one of our Customer Service Representatives for more information on “Catch-Up” Contributions and eligibility requirements.
Note: The information contained on this web site is not intended to provide specific advice or recommendations for any individual. We recommend that you consult your attorney, tax or financial advisor with regard to your situation.
