IRA Savings Account

IRA Savings Account

  • An Individual Retirement Account can provide a strong foundation to help you build toward your financial future. Let Farmers State Bank help you with your IRA rollovers and transfers too!
  • Interest compounded and credited to account quarterly
  • Closing fee of $25 will be charged for closing this account
There are two types of IRA Savings Accounts:
Traditional IRA Roth IRA
Eligibility Requirements Minimum Age No IRS minimum age restriction. No IRS minimum age restriction.
 Maximum Age For 2020 tax year, no maximum age restriction. No maximum age restriction.
 Income You or your spouse must have earned income. You or your spouse must have earned income.
Contributions Deductibility May receive tax deduction. No tax deduction.
 Maximum Contribution $6,000 plus an additional $1,000 if 50 years of age or older by end of calendar year. $6,000 plus an additional $1,000 if 50 years of age or older by end of calendar year.
 Deadline July 15, 2020 July 15, 2020
 Before Age 59.5 10% early distribution penalty unless exception applies. Taxed as ordinary income. 10% early distribution penalty generally applies to non-qualified distributions of earnings unless exception applies.
Distributions Annual Mandatory Minimum Distribution (RMD)

****No RMD required for 2020.

RMD mandatory beginning April 1, following the year in which you become 72 years of age. Taxed as ordinary income. No RMD.
 Qualified Taxed as ordinary income, no penalty applies. Tax-free distribution for certain situations after a 5 year mandatory waiting period.
 Nonqualified 10% early distribution penalty unless exception applies. Taxed as ordinary income. Earnings are taxed and generally subject to a 10% penalty unless exception applies.