To help establish a financially secure future, it's important to start planning early. You can get your plan underway with a First National IRA. To help you make the most of your retirement assets, we offer CD and Money Market products that are FDIC insured up to $250,000.
The traditional IRA allows you to defer taxes on the earnings on your contributions until they are withdrawn. Also, certain contributions are tax deductible in the tax year for which you make them. You are eligible to establish a traditional IRA if you are younger than age 70 1/2 for the entire tax year and you or your spouse have compensation.
The Roth IRA allows only nondeductible contributions and features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a traditional IRA. You are eligible to establish a Roth IRA if you or your spouse have compensation and your modified adjusted gross income (MAGI) does not exceed certain prescribed limits.
Contributions may potentially grow tax-free when requirements are met
The Coverdell Education Savings Account (CESA), formerly known as the Education IRA, allows an annual contribution of $2,000 per beneficiary per year. Earnings grow tax-free as long as distributions are used for eligible expenses. The beneficiary must be under the age of 18 when the account is established. There are certain contribution restrictions for income levels above $95,000 per year.
The Simplified Employee Pension (SEP) plan is designed for small business owners who want a low-cost, easy to maintain retirement plan for themselves and their employees. You can make tax-deductible contributions at any age as long as you are self-employed or a small business owner. You also have the flexibility to change how much the business contributes from year to year. We offer CD and Money Market products to make the most of your IRA contributions. Additional investment choices may be avaialable through First Santa Fe Investment Services.
Retirement planning for small business owners.
Account descriptions are for informational purposes only and do not constitute tax advice. Please consult with a tax professional for tax advice.