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Individual Retirement Accounts - IRA's

Individual Retirement Account (IRA)

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.

Coverdell Education Account

The Education IRA is now known as a Coverdell Education Savings Account (CESA.) The limits for tax-free withdrawals have been raised from $500 per year 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.

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 $5000 of earned income each year, $10,000 if you include a nonworking spouse or $10,000 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. Traditional IRA accounts require payments to begin no later than  the year in which you reach 70-1/2 or anytime, if you should become permanently disabled.  There is a interest penalty and a $25 premature withdrawal fee for early withdrawal if under the age of 59 1/2 and not disabled. With the Roth IRA, you are not required to take distributions from it at any certain age. 

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

2014 $5500
2015 and later years $5500 plus COLA*
*Subject to annual cost-of-living adjustments (COLAs), if any.

Catch-up Contribution for IRA holders 50 or older

Year

Amount

2014 $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.

koftelie 2013  

 

Karen Oftelie

Manager

218-333-4301

 

 

 

 

Cindy Trosen 

Deposit Services Representative

218-333-4377

 

 

 

Jan Reierson

Deposit Services Representative

218-333-4341

 

 

 

Darlene Dorr

Deposit Services Representative

218-333-4349

 

 

Carla Johnson

Deposit Services Representative

218-333-4351

 

 

christie k

Ryan Welle

Investments Officer

218-333-4342

 

 

 

 

 

 

 

 

Jacquie Williamson

Investments Officer

218-333-4333

 

 

 

 

 

 

 

 

Lynda Stenseng

55 Connection Director

218-333-4347

 

 

 

 

 

 

 

 

 

Christine Korhonen

Deposit Services Representative &

Young Investor and Teen Investor Director

218-333-4352

 

 

 

 

 

RoxAnn Aaberg

Manager Downtown Express

218-333-4371

 

 

 

 

 

Todd Reierson

Assistant Manager 

Downtown Express

218-333-9641

 

 

 

 

Jan Loisel

Manager, FNBB South

218-333-4392

 

 

 

 

Lori Lauderbaugh

Assistant Manager, FNBB South

218-333-4397

 

 

 

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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