Individual Retirement Accounts (IRAs) – Altoona, PA and Duncansville, PA
Availability:
To any person with earned income who is 18 to 70 1/2 years old.
Minimum Investment:
This varies depending on term of Certificate of Deposit chosen by customer. Ranges from $100.00 to $500.00.
Maximum Investment:
To any working individual under the age of 50 is eligible to contribute $5,500.00 annually. Any working individual age 50 to 70 1/2 is eligible to contribute $6,500.00 annually. No limit on amounts transferred or rolled-over from existing IRA’s or Qualified Retirement Plans. Contribution limits aggregated between Roth & Traditional IRAs
Fixed Individual Retirement Account (IRA) Certificate of Deposit
| LENGTH OF TERM | MINIMUM BALANCE TO OBTAIN APY | INTEREST RATE | ANNUAL PERCENTAGE YIELD | DISCLOSURE |
|---|---|---|---|---|
| 1 Year | $500.00 | 0.25% | 0.25% | View 1 Year (IRA) CD Disclosure |
| 18 Months | $500.00 | 3.25% | 3.29% | View 18 Months (IRA) CD Disclosure |
| 2 Year | $500.00 | 0.40% | 0.40% | View 2 Year (IRA) CD Disclosure |
| 3 Years | $500.00 | 0.50% | 0.50% | View 3 Years (IRA) CD Disclosure |
| 4 Years | $500.00 | 0.50% | 0.50% | View 4 Years (IRA) CD Disclosure |
| 5 Years | $500.00 | 0.50% | 0.50% | View 5 Years (IRA) CD Disclosure |
Penalty for Early Withdrawal if under 59 1/2 years old.
*** RATES SUBJECT TO CHANGE AT ANYTIME WITHOUT NOTICE ***
Floating Individual Retirement Account (IRA) / Education Savings (ESA) Certificate of Deposit
| LENGTH OF TERM | MINIMUM BALANCE TO OBTAIN APY | INTEREST RATE | ANNUAL PERCENTAGE YIELD | DISCLOSURE |
|---|---|---|---|---|
| 18 Months | $100.00 | *4.25% | *4.32% | 18 Months Floating IRA/ESA CD Disclosure |
*The rate may change after the account is opened.
Penalty for Early Withdrawal if under 59 1/2 years old.
*** RATES SUBJECT TO CHANGE AT ANYTIME WITHOUT NOTICE ***
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Funds can be withdrawn by individuals 59 1/2 years or older at any time without penalty.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).
