IRAs

A Traditional IRA is an investment vehicle that provides tax benefits based on the needs and goals of the individual. The traditional IRA allows for a tax deduction at the time of the investment with tax-deferred accumulation. Taxes are paid upon withdrawal after age 59 ½. The Roth IRA allows for tax free withdrawals but has no upfront tax deduction. Consult your tax advisor for specific tax advice.

  • Pays interest on entire balance 
  • Contributions may be tax deductible depending on tax-filing and income 
  • There are no income caps that will prevent how much you can contribute 
  • Withdraws for special purposes may be permitted prior to retirement 
  • Fixed interest rate 
  • Individuals 50 years or older can make the contribution limit plus an additional catch-up contribution 
  • Pays interest on entire balance
  • Withdrawals are tax free within certain limitations
  • Withdrawals can be made without penalty once you reach the age of 59 ½ provided the funds have been in the account for 5 years
  • Withdrawals for special purposes may be permitted prior to retirement
  • You can continue contributing even if you have reached the age of 70 ½
  • Minimum distributions are not required at any age
  • Individuals 50 years or older can make the contribution limit plus an additional catch-up contribution
Term Minimum APY* Interest Rate
IRA Fixed 2 Year CD (Interest Compounds Semiannually)+^ $2500 1.10% 1.10%

*APY (Annual Percentage Yield) and Interest Rate are variable and may change daily.

+IRA Umbrella plans with less than $5,000 will receive an IRA minimum balance fee of $50.00 annually.  (plan is one or multiple CDs in a Roth or Traditional IRA umbrella).  

^Early withdrawal penalties and interest compounding penalties: 91 day to 11 month CD -  Interest penalty equal to CD term, interest compounds every 3 months. 1 year & greater CD - 12 months interest penalty, interest compounds every 6 months.

For more details please visit a Farmers State Bank location, call FSB at 1-877-FSB-1879, or email us at bank@fsb1879.com.