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INDIVIDUAL
RETIREMENT ACCOUNTS (IRA)
First
United Bank offers a variety
of Individual Retirement
Accounts (IRAs) to meet
your individual needs.
Your family's future is
dependent upon sensible
planning and making your
money work harder for you.
Don't
wait until it is too late.
It is easy to forget about
the future, but by starting
now, you can plan adequately
for the future - whether your
retirement is 5, 10, 15 years
or more away. Start today by
opening an IRA that is right
for you. |
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TRADITIONAL
IRA |
Take
advantage of tax-deferred
earnings and possible
yearly tax deductions.
YOU
SHOULD CONSIDER A TRADITIONAL
IRA IF YOU MEET THE FOLLOWING
CRITERIA: |
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You
are a taxpayer under
the age of 70 1/2 with
earned income, or you
are a nonworking spouse |
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Deductible
contributions are more
important to you than
tax-free distributions. |
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You
do not have another IRA |
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| FIXED
RATE IRA's |
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$1,000
minimum to open |
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Renews
automatically |
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Contributions
are generally tax deductible;
thereby creating the opportunity
for you to save for the
future and today, by saving
on the taxes that you might
otherwise pay |
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Earnings
grow tax deferred |
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Additional
deposits may be accepted
at maturity |
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Lock
in a fixed interest rate
with a 1 or 2 year term |
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Competitive
rates of interest which
will always be equal
to or greater than the
comparable term for a
JUMBO CD |
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Withdrawals
from some IRA's before age
59 1/2 may be subject to
a 10% Federal IRA early withdrawal
penalty. Additionally, withdrawals
from your IRA before the
maturity date may also be
subject to an early withdrawal
penalty. |
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ROLLOVER
IRA's |
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Good
choice for individuals
who are changing jobs
or retiring and would
like to keep their retirement
plan pay out growing
unaffected by taxes.
(Must be moved from an
Employer-Sponsored Qualified
Retirement Plan). |
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By
making a direct rollover
from a qualified employer-sponsored
plan, you avoid withholding
taxes and penalties on
the distribution, so
more of your money keeps
compounding tax-deferred |
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Withdrawals
from the IRA are taxable
in the year of receipt,
and must begin by April
1 of the year following
the year you reach age
70 1/2 |
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| SIMPLIFIED
EMPLOYEE PENSION (SEP)
IRA's |
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One
of the most effective
ways for business owners
(and their employees)
to build their retirement
savings |
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Good
choice for small businesses,
self-employed individuals,
and salaried individuals
who operate a business
on the side |
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Contributions
for yourself and your
employees are tax-deductible
as a business expense |
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Earnings
grow tax free until withdrawals
begin.* With taxes deferred,
your balance may grow
faster, potentially giving
you more than you would
have by investing the
same amounts in a taxable
investment account |
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Allow
employers to contribute
up to 15% of each participant's
annual compensation or
$30,000, whichever is
less |
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Easy
to set up and maintain
with little paperwork
or administrative responsibility
for your company |
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Contributions
are made to each employee's
SEP IRA, which he or
she is responsible for
administering |
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*
Withdrawals from a sEP
IRA before age 59 1/2 may
result in IRA tax penalties.
Withdrawals from a SEP
IRA time deposit account
before maturity may result
in substantial penalty
for early withdrawal. |
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ROTH
IRA |
| The
Roth IRA gives you added
flexibility in saving for
your future. This new IRA
allows your investment
dollars to build and be
withdrawn tax-free if certain
conditions are met. Start
today by opening a Roth
IRA. You can get started
for as little as $100 up
to $2,000 per year. |
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SHOULD CONSIDER A ROTH
IRA IF YOU MEET THE FOLLOWING
CRITERIA: |
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Your
adjusted gross income
(AGI) is less than $160,000
for married taxpayers,
or less than $110,000
for single taxpayers |
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You
do not have another IRA |
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You
want to split contributions,
since the combined maximum
allowed for the Roth
IRA and a Traditional
IRA is limited to $2,000
per year |
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You want
to make contributions after
age 70 1/2 |
| FEATURES
OF THE ROTH IRA: |
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Contributions
aren't tax deductible,
but your withdrawals
are tax free if certain
conditions are met |
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The maximum
annual contribution to
a Roth IRA is: |
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$2,000
or 155% of earned income,
whichever is less; reduced
dollar-for-dollar by
contributions made to
a Traditional IRA for
the same tax year; and
phased out for singles
with adjusted gross income
(AGI) of more than $95,000
and married couples filling
jointly with AGI of more
than $150,000 |
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Convert
an Existing IRA to a Roth
IRA |
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Avoid taking Required
Minimum Distributions during
your lifetime |
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Draw your IRA funds tax-free
during your retirement
years |
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Continue making IRA contributions
after age 70 1/2 |
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Must pay the income tax
associated with the conversion |
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FIXED
RATE IRA's |
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$1,000
minimum to open |
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Additional
deposits may be accepted
at maturity |
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Lock
in a fixed interest rate
with a 1 or 2 year term |
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Competitive
rates of interest which
will always be equal
to or greater than the
comparable term for a
JUMBO CD |
Withdrawals
from some IRAs before
age 59 1/2 may be subject
to a 10% IRS early
withdrawal penalty.
Additionally, withdrawals
from your IRA before
the maturity date may
also be subject to
an early withdrawal
penalty. |
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