For our customers who are thinking ahead to
retirement, we have four ways to help you enjoy tax deferred interest
income.
Individual Retirement Account (IRA)
Tax deferred interest income is available to anyone with a United Bank IRA. You and your spouse can contribute up to the defined limits* each year, with the taxes on any interest earned postponed until the money is withdrawn. What's more, the contribution itself may be tax deductible that year. (Consult your tax advisor for the deductibility of any item.) An IRA certificate of deposit is FDIC-insured for added protection of your retirement nest egg.
Roth IRA
The Roth IRA is an Individual Retirement Account (IRA) that gives you the ability to invest after-tax dollars as a non-deductible contribution and later withdraw the funds generally tax-free. This version of the IRA is referred to as a "back ended" IRA. Unlike a traditional IRA, you cannot deduct your contributions to a Roth IRA from your taxes. The plan allows the money you contribute to grow tax-free. Furthermore, contributions may be made to a Roth IRA even if the owner participates in a qualified retirement plan such as a 401(k).
*2010 IRA Contribution Limits
If you are under 50 years of age at the end of 2010, the maximum contribution that you can make to a traditional or Roth IRA is the smaller of $5,000 or the amount of your taxable compensation for 2010. This limit can be split between a traditional and a Roth IRA but the combined limit is $5,000. The maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending upon your modified adjusted gross income (modified AGI).
If you are 50 years of age or older before 2011, the maximum contribution that you can make to a traditional or Roth IRA is the smaller of $6,000 or the amount of your taxable compensation for 2010. This limit can be split between a traditional and a Roth IRA but the combined limit is $6,000. The maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending upon your modified adjusted gross income (modified AGI).
Simplified Employee Pension
Plans
If you are self-employed or own a small
business, we also offer Simplified Employee Pension Plans. These plans allow
higher contributions, provide greater tax savings, and are a valuable benefit
for your employees. Ask your United Bank customer service representative for
more information concerning this service.
IRA Rollover
If you change jobs or financial institutions,
we offer IRA rollover services to make sure your IRA remains tax deferred when
it is transferred. Contact one of our IRA specialists for more information on
this product.
For additional information or
a personal investment consultation contact
Doug Lane
at 770.412.4946.
