IRA Deposit Accounts
Citizens National Bank offers a wide variety of accounts to help you prepare for retirement and even your child's college education. IRAs offered are the Traditional IRA, Roth IRA and the Education IRA. The Bank offers IRA accounts that are FDIC insured, with competitive yields.
Traditional IRAs
60-Month Horizon IRA
This account may be opened with a minimum deposit of $1,000.00. Additional deposits of at least $500.00 per deposit are allowed. The interest rate and the maturity date remain fixed for the entire 60-month term, regardless of the contributions made. The interest compounds quarterly.
18-Month Variable IRA
This account may be opened with a minimum deposit as low as $100.00. Additional deposits of at least $25.00 per deposit are allowed. The interest rate may change monthly based on the 90-day U.S. Treasury bill yields. The interest is compounded annually and at maturity (i.e. @ 12 months and again six months later).
Fixed Rate/Term IRA
These accounts vary in term from 30 days to 60 months, and the interest rate is fixed for the entire term. The account may be opened with a minimum balance of $1,000.00, but no additional deposits are allowed. Interest is compounded at maturity for terms up to 12 months. Interest is compounded quarterly for terms of 12 months or more.
A person may invest in a Traditional IRA annually as long as they are under the age of 70 ½ for the full tax year and have earned income. The allowed annual maximum contribution is $3,000.00 or $3,500.00 for those individuals age 50 or above (rollover and transfer IRA balances may exceed $3,000.00).
Roth IRAs
We currently offer two types of Roth IRA accounts.
Our 18-month Roth IRA account requires a minimum opening deposit of $1,000.00, offers a fixed rate for the entire term, and does not allow additional deposits during the term. Interest compounds quarterly.
Our 60-month Roth IRA account may be opened with a minimum deposit of $1,000.00. Additional deposits of at least $500.00 are allowed. The interest rate and term on the 60-month Roth IRA are fixed regardless of contributions made. The Roth IRA offers a competitive rate for the entire term, and interest is compounded quarterly.
The Roth IRA is a nondeductible retirement account that features tax-free withdrawals for qualified reasons after a five-year holding period. A person may make annual contributions to their 60-month Roth IRA if they have earned income and their modified adjusted gross income (MAGI) does not exceed certain limits. The maximum allowed annual contribution to the 60-month Roth IRA is $3,000.00 or $3,500.00 for those individuals age 50 or above (Rollover, Conversion and Transfer IRAs may exceed $3,000.00). Mandatory distributions @ 70 ½ are not required.
Coverdell Education Savings Accounts
Coverdell Education IRA accounts are available in 18-month and 60-month terms.
The 18-month Education IRA may be opened with a minimum deposit of $1,000.00. Additional deposits are not accepted during the term. The interest rate and term are fixed for the entire 18-month period.
The Education IRA is a 60-month account that may be opened with a minimum deposit of $1,000.00. Additional deposits of $500.00 per year are allowed. The interest rate and term are fixed for the entire 60-month period.
Unlike the Traditional and Roth IRAs, the Education IRA is not to be used for a retirement savings plan. It is a nondeductible account that features tax-free withdrawals for a very special purpose - a child's higher education expenses. Contributions may not be made after the child reaches the age of 18.
For more information, Contact Us.
