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The Trust Department at First Bank & Trust Co. is comprised of professional individuals trained to help you manage your investments. We offer a broad range of trust and custody services to businesses just like yours. Our team of experts will work together to provide the personal attention and the financial services that you expect. For more information you can contact our Trust professionals by email: Hal Pennington in Duncan or Derrick Whiting in Ardmore.
We offer the following services to our Business Banking customers:
Custodial Accounts
Management Accounts
Employee Benefit Plans
IRAs
— SIMPLE IRA
— Simplified Employee Pension
Escrow Services
— 1031 Like Kind Exchanges
Custodial Accounts are for customers who want to invest in different types of investments, such as mutual funds, government securities, stock, or certificates of deposit, but do not necessarily want to take the time to handle the paperwork. A Custodial Account allows you to have complete control over your investment decisions. You can diversify and change your investments as often as you choose to optimize your return. As custodian for the assets of individual investors, we provide various bookkeeping services, including periodic consolidated statements, collection and distribution of income, details of purchases and sales of securities, notification of all transactions, and year-end tax information.
If you do not have the time or expertise to manage your own investments, you can establish a Management Account. We will assist you in the design and implementation of an investment portfolio of individual securities based upon your goals and objectives. When you have a Management Account, we will follow an investment strategy designed according to your investment style, goals, and tolerance for risk. Like a Custodial Account, we provide various bookkeeping services, including periodic consolidated statements, collection and distribution of income, details of purchases and sales of securities, notification of all transactions, and year-end tax information.
One of the greatest challenges facing businesses today is providing employees with a retirement plan that is both comprehensive and cost effective. Whether it is a 401(k), 403(b), Profit Sharing or any other Employee Benefits Plan, we can help your business implement an employee benefit plan and are experienced in keeping employee benefit plans in compliance and handling investment decisions. We take care of the details of establishing and running your company’s retirement plan, so that you can dedicate your time and energy to your business.
We can handle the administrative details of your employee benefit plans, such as:
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Payments to retired employees
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Lump-sum payments to terminating employees
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Preparing and mailing 1099-R forms to terminated employees and retirees
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Preparation of annual IRS Form 5500 Series reports
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Calculation of participant interest in plan assets
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Preparation of employee participant statements
An Individual Retirement Account (IRA) is one of the best ways to build wealth and save for retirement. SIMPLE IRAs and Simplified Employee Pension Plans are tax-deferred retirement vehicles established by Congress to help employers provide cost effective retirement plans for their employees and to help encourage employees to save for retirement. For a discussion of Traditional IRAs and Roth IRAs, please visit Investment Services - Personal Banking.
SIMPLE stands for Savings Incentive Match Plan for Employees. SIMPLE IRAs can be used by small employers to permit retirement plan contributions for employees under a qualified salary reduction agreement. Employees may contribute to a SIMPLE IRA with the employer making matching contributions up to certain levels. Tax exempt employers and governmental entities are also permitted to maintain SIMPLE IRA plans for their employees.
The taxation of SIMPLE IRA plans is the same as under a Traditional IRA; generally contributions are not taxable until withdrawn. However, the early tax penalty (imposed for withdrawals of money before age 59 ½), is increased to 25% during the first two years of participation. Rollovers from one SIMPLE IRA to another are permitted, but rollovers to a Traditional IRA are permitted without penalty only after two years of participation.
A Simplified Employee Pension Plan (SEP) is a retirement plan that’s ideal for sole proprietors, partnerships, small corporations, or for any tax-exempt entities. It's easy to maintain, without the cost and paperwork of administering a more complex retirement program. A SEP can be established to plan not only for your personal retirement, but the retirement of your employees, as well. Employer contributions to a SEP are deposited into an IRA owned by each employee. These contributions are tax deductible by the employer and not treated as current taxable income of the employee.
We can serve as an independent third-party to hold money or other property in situations where an independent third-party is needed.
A 1031 Like Kind Exchange (named after Section 1031 of the Internal Revenue Code) can be used to defer the gain or loss recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged for similar property. When you and your tax consultant have decided that a 1031 tax deferred like kind exchange is best for you, we will see to it that the transaction proceeds according to your plan. As a Qualified Intermediary, we will prepare the exchange agreement and provide you with forms and reminder letters to simplify the process.
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