Individual Retirement Accounts


Secure Your Future With An Individual Retirement Account

Citizens State Bank & Trust Company offers all the different types of IRA’s and a number of investment options.

We offer Traditional IRA, SEP IRA, Roth IRA, and Coverdale Education IRA’s in an account that allows Bank Certificates of Deposit as the only investment tool. These accounts do not have set up fees, nor are they charged an annual fee.

We also offer Self-Directed IRA’s that allow a wide range of investment options. There is a small set up fee for each of these accounts and also a minimal annual fee.

Traditional and SEP IRA’s

The traditional IRA is an account which allows you to defer taxes on your earnings until they are withdrawn. Also, certain contributions are tax deductible in the year they are made.

Roth IRA’s

The Roth IRA is a non-deductible account that features tax-free withdrawals for certain distribution reasons after a 5 year holding period.

Coverdale Education IRA

A non-deductible account that features tax-free withdrawals for a very specific purpose…a child’s higher education expense.

Is an IRA Right For You? Take our Citizens State Bank & Trust One-Minute IRA Test and find out. Then call one of our customer service representatives today at 785-742-2101.

You might also be able to save on your present taxes with an Individual Retirement Account, by deducting your qualified contributions from your taxable income. Many Americans can deduct all or part of their IRA contributions from current income taxes. The deductible amount depends on your income, marital status and whether you’re an active participant in an employer sponsored plan as defined by the Internal Revenue Service.

With an Individual Retirement Account, you may also be able defer taxes until you retire when you will probably be in a lower tax bracket. The chart below shows you how much you may be able save each year. You may want to consult your tax advisor to review the tax deductible status of an IRA. Regardless of the amount you’ll be able to save now on taxes, an IRA is a smart way for you to save for a secure retirement.

IRA Tax Savings Potential Chart:

IRA Deductible Contribution Amount10 % Tax Bracket Savings15 % Tax Bracket Savings25 % Tax Bracket Savings28 % Tax Bracket Savings33 % Tax Bracket Savings35% Tax Bracket Savings
$1,000 $100$150$250$280$330$350
$2,000 $200$300$500$560$660$700
$2,250 $225$338$563$630$743$788
$4,000 $400$600$1,000 $1,120 $1,320 $1,400

If You’re Changing Employers, An IRA Rollover Makes Sense. If you are retiring or changing jobs and anticipate withdrawing money from your employer’s retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan. You can ask your employer to arrange for a “direct rollover” of your money into a new IRA account with us, or you can do it yourself with an IRA-to-IRA rollover.

You must complete the rollover within 60 days from the date you receive the assets from your old IRA in order to qualify and not pay the mandatory 20% withholding and possibly other penalties as well. For more information about IRA Rollovers or opening a new IRA just give us a call at 785-742-2101.