Individual Retirement Accounts (IRAs)
First South Bank offers a variety of IRA types. An IRA is a retirement trust account, established for the exclusive benefit of an individual offering the benefits of tax deferral. The following are the IRA types offered by the bank:
Allows participants to set aside a certain portion of their earned income and receive a possible tax deduction for these contributions.
Non-deductible accounts which feature tax free withdrawals for certain distribution reasons after a five year holding period. This IRA was introduced in 1998.
Allows the individual to save money for a minor’s higher education on a tax deferred basis ($500 maximum). This IRA was introduced in 1998.
Self Employed Pensions (SEP)
This is a retirement trust established for the exclusive benefit of the self-employed person, which offers the benefits of tax deferral. Regulations provide for deductible voluntary contributions of up to $2,000 per year.