IRAs

We offer Traditional, Roth and Simplified Employee Pension Plan (SEP) Individual Retirement Accounts (IRA). You can add to your IRA at any time and there is no fee. We offer maturities from 18 months to 5 years.
Distributions from IRAs before age 59 ½ may be subject to an IRS early withdrawal penalty. Please consult your tax advisor or accountant with any tax-related decisions.

Good planning can make your retirement years more enjoyable and ease the financial burden later. Farmers State Bank offers competitive rates to help you prepare for those golden years ahead. To help you decide on which term and rate will best meet your needs, a customer service representative at Farmers State Bank will be happy to help you.

*All IRA's are FDIC Insured up to $250,000.

 IRA Accounts
 

Traditional IRA

Roth IRA

Age Limit to Contribute

Up to Age 70 ½

No Age Limit

Income requirements/limits

Earned income at least equal to IRA contribution; no income ceiling

Earned income at least equal to IRA contribution; income ceiling depends on filing status

Distribution requirements

Distributions must begin at age 70½. Remainder at death can pass to heirs.

No distribution requirements; entire account can pass to heirs

Tax treatment
  • Contributions potentially tax-deferred
  • Earnings grow tax-deferred
  • Distributions taxable
  • Contributions are not tax-deductible
  • Earnings grow tax-free
  • Qualified distributions are tax free

Maximum annual contributions

Under age 50:

  • $5,500 for tax year 2018
  • $5,500 for tax year 2017

Age 50 and older:

  • $6,500 for tax year 2018
  • $6,500 for tax year 2017

Same as Traditional IRA

Rates