Citizens State Bank of Loyal offers a variety of IRA options. Call one of our experienced, dedicated IRA specialists to help assist you in determining your best plan.

Traditional IRA

• Earnings on a Traditional IRA are tax-deferred.
• Contributions may be tax-deductible depending upon your income and whether or not you have a qualified retirement plan.
• Funds can be withdrawn after age 59½ without a tax penalty.
• Distributions must be taken beginning at age 70½.
   

Roth IRA

• Earnings on a Roth IRA are tax-free, however may be withdrawn only if they satisfy a five-year waiting period AND any one of the following criteria is met:
  1. Reaching age 59½
  2. Disability
  3. First-home purchase
  4. Death (as payment to beneficiaries)

• Contributions may be withdrawn tax- and penalty-free.

• Distributions are not required to be taken at age 70½.

• Contributions are not tax-deductible.

Education (Coverdell) IRA

• This IRA was designed specifically to address education expenses.

• Deposits must be for a designated beneficiary under age 18, and withdrawals must be made by the time the beneficiary is age 30.

• Distributions and earnings are tax-free, provided they are used for qualified education expenses.

• Qualified expenses have been expanded to include school costs for kindergarten through higher education.

• A child may contribute to his or her account.

• Almost anyone may contribute, including grandparents.

• Any married taxpayer filing jointly and declaring income up to $190,000 may contribute.

• The maximum annual contribution is $2,000 per child.

• The contribution deadline is April 15th.

• Generally you may roll funds from one Coverdell ESA to a new or existing Coverdell ESA to benefit the same child and/or eligible member of the child’s family.

For current rates, contact one of our qualified personnel at any of our three locations.