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First Bank & Trust provides many types of Individual Retirement Accounts to fulfill the different needs of our clients. The following is a brief description of these accounts:Traditional IRAs are generally appropriate for taxpayers wishing to deduct their IRA contributions and defer tax on the earnings until they are withdrawn. At that time, deductible contributions and all earnings are treated as income and are taxed. Deposits may be made by those who are under 70-1/2 for the entire tax year and have earned income (or a spouse with earned income). Funds may be withdrawn from this type of IRA penalty free anytime the taxpayer reaches age 59-1/2 and for several other qualifying reasons. Roth IRAs are non-deductible deposits that feature tax-free withdrawals for certain distribution reasons after being on deposit for 5 years. Roth IRA distributions are not subject to federal taxes but state taxes may apply. Again, either the depositor or spouse must have earned income and the modified adjusted gross income may not exceed the prescribed limit. Coverdell Education Savings Accounts may help you start saving money for a child's education expenses. Contributions aren't tax-deductible but, generally, distributions used to pay for qualified educational costs are tax free. Beneficiaries may receive no more than $2000 per year and can use these funds for most expenses for educational purposes from elementary through post-secondary schools. Simplified Employee Pensions (SEP Accounts) allow an employer to make deductible contributions for the benefit of participating employees. This may be done if the employee is also the employer and, in fact, is the only qualifying employee. A SEP-IRA is set up as a Traditional IRA for the affected employee(s). This is a brief description of the different types of IRA Plans offered at First Band & Trust. Because of the complexity of IRA issues, we suggest contacting your accountant or tax-preparer to determine your eligibility and to establish which of these products would be the most appropriate for you. Any of our Certificates of Deposit may be selected for your IRA investment. In addition, we offer an IRA Savings Account and an Investment Money Market Savings Account for additional flexibility.