Individual Retirement Accounts (IRA) & Health Savings Accounts (HSA)

Individual Retirement Account (IRA)

You can choose any personal CD as your investment vehicle for your IRA; however, the bank offers a special IRA CD with more attractive features.

18 month term
$25 minimum opening balance
Interest compounds daily
Automatically renewable
Early withdrawal penalties and tax penalties may apply
Deposits allowed at any time (subject to approval and must be within IRS guidelines)

Individual Retirement Accounts or IRAs are a way for individuals to save for retirement. The Bank offers Traditional IRAs, including SEP IRAs, and Roth IRAs. You can also ask us to transfer your current IRA or rollover your 401k from your employer or prior employer to the bank you know and trust.

Traditional IRAs: The money put into a Traditional IRA may be tax deductible and the account grows tax deferred. At the age of 59 ½ the funds can be used without penalty. At the age of 70 ½ you are required to start taking minimum distributions from the account and contributions are no longer allowed. Tax deductible contributions may be subject to income taxes upon withdrawal.

SEP IRAs: A SEP or a Simplified Employer Plan is an IRA established by an employer on behalf of an employee. A SEP IRA gets all the same great tax benefits as a Traditional IRA.

Roth IRAs: The money put into a Roth IRA is not tax deductible but it does grow tax free. After 5 years, the distributions are tax free. You can start withdrawing the funds at the age of 59 ½ without penalty and you are never required to withdraw the money.

NOTE: Certain restrictions may apply. There are certain requirements that have to be met to qualify for an IRA and there are also contribution limits. Therefore, it is important to speak with a tax accountant to see which type is beneficial for you.

Health Savings Account (HSA)

The Bank offers an interest bearing checking account that puts you in control of your own HSA. In addition, we also offer CDs to help you save this money for retirement.

Checking Account

No minimum balance to open
No monthly service charge*
No minimum balance to earn interest
Tiered interest rate based on account balance
Withdrawals may be subject to an IRS tax penalty
Deposits allowed at any time (must be within IRS limits)
One (1) free box of HSA checks

*Certain Fees may apply

Certificate of Deposit

A certificate of deposit may be opened in addition to the HSA checking account.

Terms range from 30 days to 5 years
$1,000 minimum balance to open
Choose an automatically renewable CD to never miss a day’s worth of interest; however, we do offer non automatically renewable CDs as well
Competitive rates

Higher rates available for balances over $10,000 and $45,000

Transfers from the HSA checking account to the HSA CD are allowed at any time (may be subject to approval)
Early withdrawal penalties may apply

A Health Savings Account or an HSA is an account opened by an individual to save money for medical expenses. The individual must be covered under a High Deductible Health Insurance Plan in order to open this account. The money put into this account may be tax deductible, the interest earned is tax free, and withdrawals used for qualified medical expenses are also tax free. At the age of 65, individuals can use this money for anything they choose; however, those distributions not used for medical expenses are taxed. Any person or entity can make a contribution to an account on behalf of an individual including family, friends, and employers. If an employer contribution is made, the employer receives the tax deduction.

NOTE: Certain restrictions may apply. Individuals must qualify for an HSA. It is important to see your insurance company and/or a tax accountant to make sure you qualify for this type of account.

*For more information including rates or to open an account, stop by our locations or call.
*There are documentation requirements that must be met to open an account.