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Plan for your retirement with an IRA from Community State Bank.

Part of caring for the community is helping you live comfortably and save smartly. That’s why we offer Traditional and Roth IRAs! To open an IRA with Community State Bank you’ll need a $500 minimum deposit. Learn more about each of our IRA options below.


Traditional IRA

Our Traditional IRA may be tax deductible based on three factors - active participation in an employer sponsored retirement plan, federal income tax filing status, and modified adjusted gross income. Earnings are tax deferred and taxable at age 70 ½, the time of withdrawal.

In 2019, an individual can contribute up to $6,000 and individuals aged 50 and older may make additional contributions up to $1,000 as a ‘catch-up’ contribution.


Roth IRA

Roth IRAs are nondeductible accounts with tax-free withdrawals for certain distribution reasons after a 5 year holding period. You must have earned income and fall within certain income guidelines to contribute. After the account holder reaches age 70 ½, there are no withdrawals requirements.  In 2019, an individual can contribute up to $6,000 and individuals aged 50 and older may make additional contributions up to $1,000 as a ‘catch-up’ contribution. Earnings on the account may grow tax free if certain conditions are met.


SEP Plan

Under a SEP plan, an employer can decide to contribute to employees’ IRAs. Contributions are directed into a Traditional IRA held by each employee. Investment decisions and performance are the responsibility of each employee. Contributions are usually the same percent of each employee's compensation (maximum of 25%), but some plans may instead specify a fixed dollar amount for all employees. Employees who participate in a SEP plan are considered "active participants" in an employer-sponsored retirement plan. This may affect the deductibility of their Traditional IRA contributions, depending on their income.

SEP plan participation does not, however, reduce or eliminate an employee's ability to fund a Traditional IRA, and all Traditional IRA earnings are tax-deferred, regardless of SEP plan participation. More importantly, a SEP plan offers a contribution that is potentially much larger than a Traditional IRA contribution. 2019 SEP Contribution limits are $56,000, or 25% of compensation up to $280,000, the lesser of the two.


Come talk with us about which plan will work best for you.

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