IRA
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With an IRA from State Bank & Trust Co., you get secure, completely-insured investment options with a manageable initial investment, just select the IRA that fits your investment goals.
Traditional
- Earnings are tax deferred until withdrawal
- Annual contributions of $6,000 ($7,000 if age 50 or older)
- Contributions may be tax deductible*
- Created for individuals who do not participate in employer-sponsored retirement plans
- Certain individuals who do participate in employer-sponsored retirement plans may still qualify
- Mandatory minimum distributions at age 72
*Contact your tax professional regarding deductibility
Roth
- Offers a tax structure unlike any other IRA, with after-tax contributions and tax-free growth*
- Annual contributions of $6,000 ($7,000 if age 50 or older)
- Withdraw money from your Roth IRA at any time without paying taxes up to the amount of your contributions**
- Qualified withdrawals are not taxable
- No mandatory minimum distributions at age 70 and a half
*Contact your tax professional regarding deductibility.
**If you take distributions within the first five years you will receive a 10% penalty on the distribution amount.
Coverdell Savings Account (Educational Savings Account)
- Great investment for your child or grandchild's education
- Money may be used for elementary, high school, or college expenses
- Annual contributions of $2,000 can be made
- Contributions can be made for a beneficiary under the age of 18
Stop by to open a Coverdell Savings Account or IRA that fits your investment goals today.
*IRA's are FDIC insured to $250,000.