INDIVIDUAL RETIREMENT ACCOUNT

Invest in yourself.

Make art. Write a book. Travel. Teach. Consult. Whatever you dream of doing in retirement, an IRA can go a long way toward getting you there. And whether you’re 50 years away or 15, an IRA provides a safe, easy, tax-advantaged investment vehicle to save for it.

• $2,500 minimum deposit to open
  
• No set-up or annual fees
• $1,000 annual “catch up” contributions allowed for ages 50 and up
• Fixed Rate and Fixed Term or Variable Rate and Variable Term
• $20 minimum deposit to open

TRADITIONAL IRA

• Must have earned income
• No minimum contribution requirement
  
• Tax-deductible contributions (on state and federal income tax)*
• Tax-deferred earnings until withdrawal
• Eligible for withdrawals at age 59 ½
• Early withdrawals subject to penalty**
• Mandatory withdrawals at age 73
  

ROTH IRA

• Income limits apply. Consult your tax advisor.
• Non-tax-deductible contributions
• 100% tax free earnings at withdrawal*
• Penalty-free withdrawals of principal contributions*
• Eligible for interest withdrawals at age 59 ½
• Early withdrawals on interest subject to penalty**
• No mandatory distribution age
• No age limit on contributions with proof of earned income

*Subject to minimal conditions. Consult a tax advisor.
**Certain exceptions may apply, such as healthcare, purchasing first home, etc.

Which IRA is right for you?

With F&M Bank, you can choose between two options: Traditional IRA or Roth IRA. The differences are small but significant. With a Traditional IRA, you contribute pre-tax or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½. With a Roth IRA, you contribute only after-tax dollars, your money grows tax-free, and withdrawals after age 59½ are tax-free and penalty-free.

How do you know which IRA is the best savings account for you? Here’s a basic rule of thumb:

• Go the traditional route if you anticipate being in the same or lower tax bracket when you start taking withdrawals.
• Go with a Roth if you’re at an age where you want to accelerate your savings and anticipate being in a higher tax bracket.