Individual Retirement Accounts
How is your retirement savings plan shaping up?
An Individual Retirement Account (IRA) is the blanket term for a form of retirement plan that provides tax advantages for retirement savings in the United States.
Individual retirement accounts were introduced in 1974 with the enactment of the Employee Retirement Income Security Act. Taxpayers could contribute up to $1500 per year and reduce their taxable income by the amount of their contributions. In 1981 the Economic Recovery Act expanded availability of IRA's and the maximum allowable contribution was raised to $2000. Maximum allowable contributions have continued to rise and now stand at $5500 per year for individuals under 50 years of age, and $6500 per year for those 50 and older.
IRA funds cannot be distributed before the age of 59 1/2 without a penalty unless special circumstances are present.
Many people think that IRA's are only available through an employer or a financial service that specializes in IRA plans.
The American National Bank offers IRA plans which can be opened with as little at $50.00 for an IRA Savings account. The funds can then be moved to higher earning IRA options as the balance grows.
In these uncertain economic times, it's comforting to know your local hometown bank can be your partner in setting aside some funds for retirement.
Our Personal Banking Specialists would welcome the opportunity to work with you on setting up an IRA plan. You can find a Personal Banking Specialist at any one of our convenient locations.