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IRAs

Traditional IRA

A Traditional IRA is a special tax-deferred savings account authorized by the Internal Revenue Service.  It is a unique and simple way to encourage people to save money for their retirement.  This account allows you to defer taxes on the earnings of your contributions until they are withdrawn.  Also, certain contributions are tax deductible in the tax year for which they are made. 

 

Roth IRA

Unlike the Traditional IRA, contributions made to a Roth IRA cannot be deducted for income tax purposes.  However, the growth achieved through investment returns and the subsequent qualified distributions may be tax-free.  If you expect to be in a higher tax bracket when you retire, you may benefit more from the Roth IRA than from a Traditional IRA.

 

Coverdell Education Savings Account – CESA

The Coverdell Education Savings Account is a nondeductible account that features tax-free withdrawals for a very specific purpose – education expenses of a minor.

Deposits for IRA’s or CESA’s can be made to a fixed rate time deposit or a variable rate savings account.

Minimum balance to open a Traditional, Roth or CESA variable savings account at Home State Bank is $25.

IRA and CESA funds are separately insured by FDIC from any non-retirement funds the depositor may have at Home State Bank.

Home State Bank’s IRA and CESA have no annual or administrative fees.         

 

 

 

Please contact Home State Bank for more information.                

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