We will be closing at noon on Tuesday, December 24th, 2024 in observance of Christmas Eve.

We will be closed all day Wednesday, December 25th, 2024 in observance of Christmas. 

We will resume normal business hours on Thursday, December 26th, 2024.

We will be closed all day Wednesday, January 1st, 2025 in observance of New Year's Day. 

We will resume normal business hours on Thursday, January 2nd, 2025.

Individual Retirement Accounts (IRAs)

Thinking about your retirement? Wondering what else you can do to make sure you have enough when you retire? Consider opening an IRA - we offer both Traditional and Roth IRAs.

Individual Retirement Accounts (IRAs) Options

Traditional IRAs

Many Americans save through IRA's because, like you, they want to enjoy a comfortable retirement. A comfortable retirement begins with sound financial planning, and that's exactly what an IRA represents - part of a sound financial planning package. IRA's offer you a number of advantages.

  1. Security - By contributing to an IRA, you are taking an important step toward a secure financial future.
  2. Tax-Deferred Earnings - All IRA earnings are tax-deferred. This means your IRA earnings are not taxed until you take withdrawals from your IRA.
  3. Tax Deductions - You may be eligible to deduct all or part of your IRA contributions. Farmers State Bank does not provide tax, legal, or accounting advice, please consult with your tax, legal, or accounting advisors. 
  4. Flexibility - Each year you decide whether you want to contribute to your IRA. You are never required to make IRA contributions.
  5. Accessibility - Unlike some retirement plans which only allow distributions at certain times, your IRA funds are always yours. You may withdraw them whenever you wish (penalty may apply).

Open a Traditional IRA

Roth IRAs

A retirement fund where you invest your after-tax dollars today, let the investment grow tax-deferred, and withdraw your principal and earnings tax-free after 5 years. (You may be subject to a 10% penalty on the earnings if taken before age 59 1/2).

When Can I Use My IRA Assets?

If you satisfy two conditions, you may make tax-free and penalty-free withdrawals from your Roth IRA. First, the plan must have been open for a minimum of five years. Second, the withdrawal must be made after the occurrence of one of the following events:

  • Age 59 1/2
  • Death
  • Disability
  • First home purchase

Distributions, which meet the above requirements, are referred to as "qualifying distributions." While you may take distributions from your Roth IRA at any time, distributions which are not qualifying distributions will be subject to taxes (and in some cases early distributions penalties) to the extent they exceed your aggregate contributions to Roth IRA's.

Open a Roth IRA

Individual Retirement Account (IRA) Rates

Comparison table of Individual Retirement Account (IRA) Rates
Term Minimum Balance Interest Rate Annual Percentage Yield (APY) Interest Computation
Passbook $0 0.70% 0.70% Compound Daily
12 month $1,000 3.00% 3.05% Compound Daily
13 month Special $1,000 3.87% 3.95% Compound Daily
18 month $1,000 2.71% 2.75% Compound Daily
24 month $1,000 2.71% 2.75% Compound Daily
36 month $1,000 2.71% 2.75% Compound Daily
48 month $1,000 2.81% 2.85% Compound Daily
60 month $1,000 2.81% 2.85% Compound Daily

Apply Today

To apply for your Individual Retirement Account (IRA), please fill out our online form. A Personal Banker will contact you to finalize the paperwork and answer any questions you may have.

APPLY FOR AN IRA

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