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:

Traditional  IRA

Allows participants to set aside a certain portion of their earned income and receive a possible tax deduction for these contributions.

Roth IRA

Non-deductible accounts which feature tax free withdrawals for certain distribution reasons after a five year holding period.  This IRA was introduced in 1998.

 

 

 

 

 

 

 

 

 

 

Education IRA

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.

Roth IRA vs. Traditional IRA Calculator