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Certificate of Deposit       |       Individual Retirement Account

Certificate of Deposit

Certificate of Deposit less than $100,000

  • $2,500.00 minimum deposit to open
  • Annual percentage yield assumes interest will remain on deposit until maturity
  • A withdrawal of interest will reduce earnings
  • Automatically renewable for your convenience with 10 day grace period
  • Available in a variety of terms
  • Interest can compound back into CD or can be deposited to your Central Bank checking or savings account
  • A penalty may be imposed for early withdrawal
Individual Retirement Account
  • $2,500 minimum deposit to open
  • Annual percentage yield assumes interest will remain on deposit until maturity
  • A withdrawal of interest will reduce earnings
  • Automatically renewable for your convenience with 10 day grace period
  • Available in a variety of terms
  • Interest is typically compound back into CD
  • A penalty may be imposed for early withdrawal
  • Separate FDIC insurance (from other FDIC insured deposits)

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Traditional IRA

The traditional IRA first became available in 1975 to encourage people to save for their retirement and to provide for beneficiaries upon death. Higher contribution limits and greater flexibility were added with the implementation of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001. If deferring taxes on part of your income is your tax strategy, a Traditional IRA may be right for you.

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Roth IRA

The Roth IRA was first made available on January 1, 1998. Contributions are made with after-tax dollars and earnings are free from taxes and IRA penalties if certain conditions are met. If your income level is too high for a Traditional IRA, a Roth IRA may be just the thing for you.

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Educational Savings Account

In July 2001, President Bush signed legislation that formally renamed the Education IRA the Coverdell Education Savings Account (CESA). This is named after the late Senator Paul Coverdell, who championed the creation of the Education IRA.

The CESA is a tax-favored savings tool created to assist in saving for an individual’s education expenses. Distributions for qualified education expenses are not subject to federal income tax or a 10 percent penalty tax.

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IRA Transfers & Rollovers

It’s easy to move your IRA to Central Bank. Whether a Roth or Traditional IRA, you can move existing IRA money as follows:

  • Transfers -- you can come into our office, establish an IRA account with us, and complete a transfer form. This form is then sent to the institution that currently holds your funds. After receipt, the funds are sent directly to us for deposit into your account. The IRS places no limits on transfers and no part of this transaction is reported to the IRS.

  • Rollovers -- To complete a rollover, you take the funds from one institution and deposit into another institution. A rollover may be done once per year and the deposit must be completed within 60 days of distribution from the first institution. A rollover is also used when moving funds from a qualified pension plan to a Traditional IRA.

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IRA Distributions

When you withdraw money from a retirement account, it is called a distribution. Distributions from a Traditional IRA are reported to the IRS as income and as such, may be subject to income tax. There may also be IRS imposed penalties except under special circumstances such as death, first time home purchase, disability, education and reaching age 59 ½.  Distributions from a Roth IRA have more complex tax implications. You should speak with your tax advisor, accountant or attorney before proceeding with this type of transaction.

Required Minimum Distributions (RMD)

The IRS requires that, beginning in the year you become 70 ½ years of age, you begin taking a “Required Minimum Distribution” from your Traditional IRA each year. This amount will vary based upon governmental tables. Our representatives will be happy to assist in calculating your RMD if requested.

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