Individual Retirement Account (IRA) - Banking / Savings / ASB home

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Revised January 2012

We all go to work looking forward to the day we can retire. That day will come a lot sooner if you begin investing for your retirement at a young age. One of the ways to invest is through the establishment of an Individual Retirement Account.

An IRA is a type of account that has been established by congress to assist people with planning for their retirement needs. Generally any money put into an IRA cannot be taken out before age 59 1/2 without penalty from the IRS (there are exceptions to this rule). The hope of Congress was that by establishing these retirement plans, people who do not have retirement plans available to them at their place of employment would begin a savings plan using this type of account.

To simplify your retirement savings we can set up an automatic transfer on a periodic basis from your checking or savings account into an IRA account.

Types of Individual Retirement Accounts available at American State Bank include a Roth IRA, traditional IRA, and /or an educational IRA. We can also set up a SEP IRA if you are the owner of a small business.

We have two options available:

• Variable rate – rate goes up and down with interest rates

• Fixed rate – rate is fixed for one year

Remember, you have until April 17, 2012 to make your contribution for the 2011 tax year. If you know you will be making an IRA contribution each year you may want to consider making that deposit early in the year. That way you earn interest on it all year.