GreenBank :: IRAs

Individual Retirement Account

An Individual Retirement Account or IRA is a personal retirement savings plan. It is available to anyone who receives taxable compensation during the year. Businesses can set up retirement accounts for employers and employees through a SEP IRA or SIMPLE IRA and can set up a medical expense trust through a Health Savings Account.

If you want tax-deferred earnings and possible yearly tax deductions, take advantage of our IRAs. Ask about our current IRAs listed below.

Our branch locations have brochures available with more information about IRAs.

Our Customer Service Representatives at the branch locations can open IRA accounts or answer your questions.

The tax laws for IRAs are complex. Consult your financial or tax advisor about choosing the right plan for you and your business.

Traditional IRA:

A regular IRA is available to individuals under the age of 70 1/2 who have earned income. The earnings for this IRA grow tax deferred until withdrawal.

Roth IRA:

The contributions to this IRA account are not deductable. Money contributed to a Roth IRA is taxable as income in the year it is earned. Taxes are not paid on the earnings if a withdrawal is made as part of a "qualified" distribution.

Qualified distributions:

Held for a time after the five year holding period
Held after reaching the age of 59 1/2
Permanent disability
A first-time home purchase
The event of death

Non - Qualified distributions:

Occurs when earnings are distributed before meeting any of the "qualified" reasons
Nonqualified distributions of earnings will be subject to tax

SEP IRA

Retirement account designed for small businesses or self-employed person to set up a retirement plan for themselves and all employees who meet the qualifications. The employer makes tax-deductible contributions directly into the IRA of all eligible employees.

Benefits

Larger amount can be contributed than to a Traditional or Roth IRA.
Tax deduction to employer for all contributions.
Income phase outs do not apply to SEPs, so all contributions are deductible to the employer.
Flexible contributions, the contribution percentage may be changed annually.
The employer may choose to contribute nothing for himself or his employees in any given year.
Much less expensive and easier to set up and maintain for employer than traditional Qualified Plan because employee maintains and controls his/her own SEP account.

Click here to learn more about a SEP IRA

SIMPLE IRA

The SIMPLE IRA is a small business retirement plan where employees (including the employer) can make pre-tax contributions and receive matching employer contributions. Employee's salary deferrals, employer's contributions and any investment earnings are not taxed until the employee takes distributions from the SIMPLE IRA. One of the funding options for the SIMPLE is through an IRA type account.

Click here to learn more about a Simple IRA

Health Savings Accounts (HSA)

A Health Savings account is a tax-exempt trust or custodial account established exclusively for the purpose of paying qualified medical expenses of the account beneficiary who, for the months for which contributions are made to an HSA, is covered under a high deductible health plan.

Click here to learn more about a Health Savings Accounts.