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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 $5500 of earned income each year, $11,000 if you include a nonworking spouse or $11,000 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



2015 $5500134,224.81
2016 and later years $5500 plus COLA*24.81
*Subject to annual cost-of-living adjustments (COLAs), if any.

Catch-up Contribution for IRA holders 50 or older



2014 & 2015 $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







Cindy Trosen 

Deposit Services Representative





Jan Reierson

Deposit Services Representative





Darlene Dorr

Deposit Services Representative




Carla Johnson

Deposit Services Representative




christie k

Ryan Welle

Investments Officer










Jacquie Williamson

Investments Officer










Lynda Stenseng

55 Connection Director











Christine Korhonen

Deposit Services Representative &

Young Investor and Teen Investor Director







RoxAnn Aaberg

Manager Downtown Express







Todd Reierson

Assistant Manager 

Downtown Express






Jan Loisel

Manager, FNBB South






Lori Lauderbaugh

Assistant Manager, FNBB South





Other benefits of IRA include FDIC Insurance will cover IRA accounts with balances up to $250,000. For more information go to

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