Personal Banking : Time Deposits & IRAs
Time Deposits
- $1,000.00 Minimum to open
- Available Terms - 31 days to 5 years
- Withdrawals are allowed during Certificate of Deposit grace periods
- Penalty for early withdrawal
- Fixed Rate
- Interest may be paid quarterly, monthly, or at Maturity; by check, ACH, deposit to another account, or added back to the certificate.
- Bonus Rates for Golden Checking customers
- Automatically Renewable
IRAs
Think of us for IRA's & Retirement!!
If you have earned income, you may be able to take advantage of an IRA from Austin County State Bank. Annual or periodic contributions are allowed. Contributions are allowed up to the tax filing date, without extensions. Tax-free rollovers and transfers are also welcome. There are no set-up or annual service charges, and owners and beneficiaries enjoy various payout options.
Individual Retirement Account (IRA)
- Must have earned income
- Annual or periodic contributions allowed
- Choice of terms for your investment, fixed rate
- Contributions are allowed up to the tax filing date, without extensions
- Tax-free rollovers and transfers
- No setup or annual service charges
- Various payout options for owners and beneficiaries
Traditional IRA
If you are under 70 ½ years of age, consider the Traditional IRA. Contributions are tax-deductible (subject to certain Modified Adjusted Gross Income limitations) and interest earned is tax-deferred. Enjoy penalty-free distributions after age 59 1/2. You can actually get penalty-free distribution to pay certain higher education expense or for first-time home purchases.
- Limited to individuals under 70½ years of age
- Tax-deductible contributions subject to Modified Adjusted Gross Income (MAGI) limitations.
- Interest is tax-deferred
- Penalty-free distributions at age 59½, higher education expenses or first-time home buyer (additional reasons apply), death, and disability.
- Mandatory distribution requirements begin at age 70½
Roth IRA
- No age requirements
- Contributions subject to Modified Adjusted Gross Income limitations
- Qualified distributions are penalty and tax-free if funds meet a five year holding period at age 59½ or first time home buyer
- No mandatory distribution requirements
Coverdell Education Savings Account (CESA)*
- Used for qualified primary, secondary, and higher education expense
- Contributor must meet MAGI limitations
- Designated beneficiary must be under 18 years of age
- Funds must be distributed by age 30
- Unused funds may be rolled over to family members
*Formerly referred to as Education IRA.
SMALL BUSINESS RETIREMENT ACCOUNTS
Simplified Employee Pension (SEP) Account
Any employer with no more than 100 employees, and has no other qualified plan, may establish a SIMPLE plan.
- Eligible to any employer who maintains no other qualified plan
- May be established up to the tax-filing due date, plus extensions
- Tax-deductible contributions are made by the employer on behalf of all eligible employees
- All employees age 21 or older who have worked three of the preceding five years receive a contribution
- Contributions are limited to 15% of compensation or $30,000
- Contributions are invested in IRAs
- General rules regarding Traditional IRAs apply
Savings Incentive Match Plan for Employees (SIMPLE)
- Eligible to any employer with no more than 100 qualified employees who maintains no other qualified plan
- Contributions made to each of the eligible employees who earned at least $5,000 during two preceding years
- Either a matching contribution or a non-elective contribution is made
- Employees may defer up to $6,000 each year
- Funds must be held in the plan for two years Distributions subject to same rules as Traditional IRAs