Start Planning for Retirement: Individual Retirement Accounts (IRAs)
Whether your retirement dream is traveling the world or staying close to home, an IRA can help you fulfill your dreams.
IRAs offer tax advantages* while you save, so you can maximize your funds. Talk to a First National Bank and Trust Company representative about which IRA plan is right for you.
- Tax-advantaged retirement savings*
- Competitive interest above standard savings rates
- No setup or maintenance fees
- Annual contribution limits apply
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Available in traditional and Roth
- FDIC insured
What is an IRA?
Whether your retirement goal is traveling the world, or staying close to home, an IRA can help you fulfill your dreams. Individual Retirement Accounts or IRAs offer tax advantages* while you save, so you can maximize your funds.
How does an IRA work?
When looking for a savings account, consider an IRA as an option. There are many different types of IRA accounts to choose from such as a traditional (pre-tax) or Roth (after tax) account – or even a CD, CDtwo or Money Market. Each option has its perks. IRAs offered at financial institutions are federally insured up to a specific amount required by law.
What’s the catch?
You will need to work with your tax advisor (not your bank) to maximize your tax benefits from an IRA. There is also an annual contribution limit on IRAs. For example, the 2020 contribution limit is $6,000, however, if you are 50 or older you can have a higher "catch-up limit" of $1,000 for a total of $7,000. Be aware, you may have to pay a penalty for early withdrawals from your Individual Retirement Account. You will also receive a 1099 reporting your interest made on an IRA each year.
What kind of interest can I get in an IRA?
Typically an IRA offers a more competitive interest rate than an average savings account.
What do I need to open an IRA?
You will need your driver’s license, address (if different than your driver’s license, you will need proof of that address), your social security number, your date of birth and a deposit that meets your bank’s minimum amount required. It’s also important to think about who your beneficiary on this account will be. You will need their name, address, birthdate and social security number. You are not able to have joint owners or authorized signers on this type of account, as it is an “individual” retirement account.
How do I open an IRA account?
If you’re interested in learning more about your IRA options or opening an Individual Retirement Account at First National Bank and Trust Company, simply contact us via phone, email, in-person or choose "Connect Now" below to get started.
DO MORE with your money at First National Bank and Trust Company
At First National Bank and Trust Company, we IGNITE PROSPERITY® by helping our clients do more with their money. Whether it’s saving a little extra cash each month or accomplishing a long-term strategy, our goal is to help you transform your financial life. Call and schedule an appointment today, one of our team members would love to help you do more with your money at First National Bank and Trust Company. First National Bank and Trust Company has locations in Illinois and Wisconsin. For more information visit firstnbtc.com or contact us at 217-935-2148 in Illinois or 866-566-2265 in Wisconsin. #igniteprosperity
*Consult your tax advisor