Locations:

   Retirement and Savings

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Traditional Individual Retirement Accounts (IRA) Certificate of Deposit


Availability:

Any person with earned income who is 18 to 70 1/2 years old.


Minimum Investment:

Varies depending on term of Certificate of Deposit chosen by customer. Ranges from $100.00 to $500.00.


Maximum Investment:

Any working individual under the age of 50 is eligible to contribute $5,000.00 annually or $10,000.00 annually per married couple with only one working spouse. Any working individual age 50 to 70 1/2 is eligible to contribute $6,000. 00 annually or $12,000.00 per married couple with only one working spouse. No limit on amounts transferred or rolled-over from existing IRA's or Qualified Retirement Plans. Contribution limits aggregated between Roth & Traditional IRAs.


Rates:

See Product Rates


Liquidity:

Funds can be withdrawn by individuals 59 1/2 years or older at any time without penalty. Individuals under 59 1/2 years can withdraw without government penalty if all the funds are reinvested in another IRA within 60 days. If the funds are not re-invested, the government imposes a 10% penalty. The bank imposes a penalty for early withdrawal from a certificate.  The IRS offers some exceptions for early withdrawal.


Insurance:

All funds are insured up to $250,000 per individual by FDIC


Uses:

An IRA gives working individuals a simple, tax sheltered way to save for retirement with easy access.


Benefits:

  • Contributions may be fully or partially tax deductible depending on income level, marital status, and if the individual participates in an employer sponsored retirement plan.
  • Interest earned on IRA's is tax deferred. Federal income tax is not paid on earnings until withdrawn from the IRA.
  • Tax deferred investments grow faster than investments made without the benefit of tax deferral.
  • Supplements Social Security income after retirement.
  • Access to funds at any time. (Individual situations would determine if penalties would be appropriate to distributions.)



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ROTH Individual Retirement Accounts (ROTH IRA)


Availability:

Any person with earned income who is 18 to 70 1/2 years old.


Minimum Investment:

Varies depending on term of Certificate of Deposit chosen by customer. Ranges from $100.00 to $1,000.00.


Maximum Investment:

Any working individual under the age of 50 is eligible to contribute $5,000.00 annually or $10,000.00 annually per married couple with only one working spouse, if their Modified Adjusted Gross Income (MAGI) meets the regulated requirements. Any working individual age 50 or older is eligible to contribute $6,000.00 annually or $12,000.00 per married couple with only one working spouse, if their Modified Adjusted Gross Income (MAGI) meets the regulated requirements. No limit on amounts transferred or rolled-over from existing IRA's or Qualified Retirement Plans. Contribution limits aggregated between Roth & Traditional IRAs.


Rates:

See Product Rates


Liquidity:

Funds can be withdrawn by individuals 59 1/2 years or older at any time without penalty. Individuals under 59 1/2 years can withdraw without government penalty if all the funds are reinvested in another IRA within 60 days. If the funds are not re-invested, the government imposes a 10% penalty. The bank imposes a penalty for early withdrawal from a certificate prior to maturity. IRS offers some exceptions for early withdrawal.


Insurance:

All funds are insured up to $250,000 per individual by FDIC


Uses:

An IRA gives working individuals a simple way to save for retirement with easy access.


Benefits:

  • Regular/spousal tax-year contributions are always tax-free and penalty-free when distributed.
  • Conversion Contributions are tax-free and penalty-free if the distribution is a "qualified distribution".
  • Interest earned on a Roth IRA is tax-free and penalty-free if the distribution is a "qualified distribution".
  • Supplements Social Security income after retirement.
  • Access to funds at any time. (Individual situations would determine if penalties would be appropriate to distributions.)



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Education Savings Account (ESA)


Availability:

Any child who is under the age of 18 years old.


Minimum Investment:

Ranges from $25.00 to $1,000.00.


Maximum Investment:

$2,000.00 per year.


Account Type:

Floating Rate Certificate of Deposit


Rates:

See Current Rates


Access to Account:

Distributions for education expenses must be done through an ISB IRA Consultant.


Insurance:

All funds are insured up to $250,000 by the FDIC.


Uses:

An ESA gives individuals a tax sheltered way to save for education expenses.


Benefits:

  • Tax-Free Earnings if qualified.
  • Tax-Free Distributions if qualified.



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Health Savings Account (HSA)


Availability:

  • Any individual that is covered under a High Deductible Health Plan. ($1,200 - single coverage; $2,400 - family coverage)
  • Not be covered under any other health plan that is not part of the High Deductible Health Plan.
  • Not be enrolled in Medicare.
  • Not claimed as a dependant on another person's tax return.

Minimum Investment:

$50.00 (Contributions can be made through ACH Debits)


Maximum Investment:

  • $3,050 annually for self coverage (under age 55); $6,150 annually for family coverage (under age 55).
  • No limit on amounts transferred or rolled-over from existing HSA.
  • Plus (+) Additional "Catch-Up" contributions are available to individuals 55 years or older.



Account Type:

Variable Rate NOW Account


Frequency of Rate Changes:

We may change the interest rate on your account at any time.


Tiering Levels and Their Applicable Interest Rates:

The interest rate to be paid on your account will depend on the daily balance in your account. See rate chart to determine what interest rate will be paid depending on the daily balance on your account. The separate "tiers" that have varying interest rates that apply are:



  • If the daily balance in your account is less than $250.00, the entire balance in your account will earn the appropriate interest.
  • If the daily balance in your account is $250.00 up to and including $1,999.99, the entire balance in your account will earn the appropriate interest rate.
  • If the daily balance in your account is $2,000.00 up to and including $4,999.99, the entire balance in your account will earn the appropriate interest rate.
  • If the daily balance in your account is $5,000.00 up to and including $24,999.99, the entire balance in your account will earn the appropriate interest rate.
  • If the daily balance in your account is $25,000.00 or more, the entire balance in your account will earn the appropriate interest rate.

Rates:

See Product Rates


Access to Account:

Funds for medical expenses may be written by any of the following;

  • Writing a check
  • ACH Credits (example: Insurance Premiums)



Insurance:

All funds are insured up to $250,000 by the FDIC.


Uses:

A HSA gives working individuals a tax sheltered way to save for medical expenses.


Benefits:

  • You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040.
  • Contributions to your HSA made by your employer(including contributions made through a cafeteria plan) may be excluded from your gross income.
  • The contributions remain in your account from year to year until you use them.
  • The interest or other earnings on the assets in the account are tax free.
  • Distributions may be tax free if you pay qualified medical expenses.
  • A HSA is "portable" so it stays with you if you change employers or leave the work force.