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Individual Retirement Accounts are a great way to invest for your retirement. You may even qualify for a tax credit. Please consult your tax advisor regarding the credit.
First Bank & Trust Co. Individual Retirement Accounts Comparison
Regular/Traditional IRA
- Contributions may be tax-deductible
- Contribution limits
Tax Year Under Age 50 Age 50 and Over
2005 $4000 $4500
2006 $4000 $5000
- Interest earned is tax deferred
- No minimum age requirement to contribute
- The maximum age to contribute is 70 ½
- Accountholder must have earned income and file a tax return
Roth IRA
- Contributions are non-deductible
- Contribution limits
Tax Year Under Age 50 Age 50 and Over
2005 $4000 $4500
2006 $4000 $5000
- Interest earned is tax-free and penalty free, as long as the distributions are qualified
- No minimum age requirement to contribute
- No maximum age to contribute
- Accountholder must have earned income and file a tax return
Coverdell Education Savings Account (CESA)
- Established for the benefit of a child under the age of 18
- Contributions are non-deductible
- May contribute $2000 per tax year
- Interest earned is tax-free and penalty free, as long as the distributions are for qualified educational expenses
- No minimum or maximum age requirements for the contributor
- The contributor does not have to have earned income
Note on interest-bearing accounts: Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (for example, checks). We use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the principal in the account each day. Interest rate may change at any time at bank's discretion.
For current interest rate information, please contact the Banking Center nearest you.
| Fixed IRA/Certificate of Deposits |
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$1000 |
Yes |
Regular, Roth & Coverdell |
- $1000 minimum deposit
- No additions allowed until maturity
- Terms available:
- 1 Year
- 2 Year
- 3 Year
- 4 Year
- 5 Year
- Annual Percentage Yield (APY) is tied to the corresponding regular CD APY
- Interest paid by check, deposited to checking or savings account or compounded
- Auto-renewable
- Early withdrawal penalties:
- 30 day interest penalty 1 year term
- 90 day interest penalty 2 year term
- 182 day interest penalty 3 - 5 year term
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$100 |
Yes |
Regular, Roth & Coverdell |
- $100 minimum deposit
- Can add to at anytime
- Annual Percentage Yield (APY) changes monthly
- Interest paid by check, deposited to checking or savings account or compounded
- Auto-renewable
- 90 Days interest penalty for early withdrawal
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$2500 |
No |
Regular, Roth & Coverdell |
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2 yr First Choice IRA
- $2500 minimum deposit
- Can make a minimum of $500 deposits to your account at your discretion. (Total deposits may not exceed the original face value of the IRA)
- Annual Percentage Yield (APY) is tied to the regular 2 Year CD APY
- Interest paid by check, deposited to checking or savings account or compounded
- Your APY can be adjusted 1 time during the 2 year term upon your written request.
- Non Auto-renewable
- 90 Days interest penalty for early withdrawal
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$500 |
No |
Roth |
- $500 minimum deposit
- Can make a minimum of $100 deposits to your account at your discretion. (Total deposits may not exceed the original face value of the IRA)
- Annual Percentage Yield (APY) is tied to the 5 Year CD APY
- Interest paid by check, deposited to checking or savings account or compounded
- Your APY can be adjusted 2 times during the 5 year term upon written request
- Non Auto-renewable
- 1 year interest penalty for early withdrawal
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