Individual Retirement Accounts
Coverdell Education
Accounts
Education IRAs are now known as Coverdell
Education Savings Accounts The limits for tax-free withdrawals
have been raised from $500 per year under the old program to
$2000 per year. In addition, several of the distribution
restrictions have been eased. For instance funds can now be
used for educational expenses other than college. The new tax
laws make the Coverdell Education Savings Account more
attractive.
Individual Retirement
Accounts
No matter what your age, retirement
investments are an important consideration. First National Bank
Bemidji will work with you to find a competitive IRA that will
meet your needs. The interest rate is
subject to change.
Retirement plans for businesses are also
available. See a Deposit Services Representative at one of our
locations or call 333-4340.
What are your IRA Options?
You can contribute $4000 of earned income
each year, $8000 if you include a nonworking spouse or $8000 if
both of you are wage earners. You will have several
contribution investment options which are tax deferred until you
begin to withdraw funds. Payments may begin at age 59-1/2 and
must begin no later than the year in which you reach 70-1/2 or
anytime, if you should become permanently disabled. There is a
penalty for early withdrawal if under the age of 59 1/2 and not
disabled.
Recent changes in tax laws have made
Individual Retirement Accounts (IRAs) even more attractive. The
primary change has been to raise the amount you can deposit to
this tax deferred investment. Your IRA can be the cornerstone
to your retirement planning program. You can invest in a traditional tax deferred
IRA or a Roth IRA,
which is a nondeductible
account that features tax-free withdrawals for certain
distribution reasons. You do not pay taxes on the earnings,
provided they are part of a qualified distribution.
IRA annual contribution for Traditional and
Roth IRA's
|
Year |
Amount |
|
2006-2007 |
$4000 |
|
2008 and after |
$5000* |
| *Indexed
beginning in 2009 |
|
Catch-up Contribution for IRA holders 50 or
older
|
Year |
Amount |
|
2006 and after |
$1000* |
|
*Contributions allowed in
addition to basic annual contribution |
Direct Deposit is available for your tax
return into your First National Bank Bemidji IRA account. You
may split your direct deposit into three different First
National Bank Bemidji accounts. IRS
Direct provides information on how you can sign up for
direct deposit of your tax refund. Call us at 751-2430 to
discuss direct deposit of your tax return into your First
National Bank Bemidji IRA or other deposit account.
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Barb
Mountain
Deposit
Services Manager
218-333-4342
|
Cindy
Trosen
Deposit
Services Representative
218-333-4377
|
Jan
Reierson
Deposit
Services Representative
218-333-4341
|
Lynda
Stenseng
55
Connection Director
218-333-4347
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Paul
Welle
Vice
President,
Investments
218-333-4312
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Jacquie
Williamson
Investments
Officer
218-333-4333
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RoxAnn
Aaberg
FNBB
Express Manager
218-333-4371
|
Darlene
Dorr
FNBB
North Personal Banker
218-333-4349
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Jan
Loisel
FNBB
South Manager
218-333-4392
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Karen
Oftelie
FNBB
North Manager
218-333-4301
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Other benefits of IRA include FDIC Insurance
will cover IRA accounts with balances up to $250,000. For more
information go to http://www.fdic.gov/deposit/deposits/insured/index.html.
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