At State Bank of Countryside, we understand the importance of saving for your retirement. We offer both Traditional and Roth IRAs. Whether making a Contribution, Rollover or Transfer, SBC offers a variety of investment terms designed to meet your needs. Each retirement Certificate may be opened with a fixed rate and a term from 32 days to 4 years or a variable rate for an 18 month term.
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We believe saving for retirement is of critical importance. Because of this, we do not charge any handling fees to maintain your IRA account.
Our friendly staff is very knowledgeable. Whether it's Required Minimum Distributions or Rollovers, our staff is ready to help in any way we can. We encourage you to seek the advice of your tax professional, accountant, or attorney before proceeding with any retirement account transaction.
The traditional IRA first became available in 1975 to encourage people to save for retirement and to provide for beneficiaries upon death. Higher contribution limits and greater flexibility were added with the implementation of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001. If deferring taxes on part of your income is your tax strategy, a Traditional IRA may be for you.
IRS publication 590 (Pages 6 through 56)
The Roth IRA (named after former Senator William V. Roth Jr.) was first made available on January 1, 1998. In this account, contributions are made with after-tax dollars and earnings are free from taxes and IRS penalties if certain conditions are met. If your income level is too high for a Traditional IRA, a Roth IRA may be just the thing for you.
IRS publication 590 (Pages 56 through 67)
Moving IRA money from one IRA to another has never been easier. Whether you are dealing with a Roth or Traditional IRA, you can move existing IRA money in one of two ways:
- Transfers
Many people prefer to move retirement money as a transfer. Your first step is to go to the bank where the funds are going. You establish the account there and complete a transfer form. This form is then sent to the institution that currently holds the funds. Remember to leave plenty of time if you are mailing the form. The funds are then sent directly to the receiving bank. In some cases, you may be allowed to carry the check yourself, however that is up to each individual institution. The best part is that you can do this as many times as you want, the IRS places no limits on transfers. No part of this transaction is reported to the IRS, which makes this a favorite with customers. - Rollovers
To complete a rollover, you take the funds from one institution, in a check made payable to yourself, and deposit into another institution. This transaction may only be done once per year and the deposit must be completed within 60 days of the distribution (withdrawal from the first institution.) This option may be best if you need to use the IRA funds during the 60-day period or if you do not have time to complete the transfer.
A rollover is also used to move funds from your qualified pension plan to a Traditional IRA. Your plan administrator can help you with the necessary forms.
Taking money from a retirement account is called a distribution. Distributions from a Traditional IRA will be reported to the IRS as income to you and as such, may be subject to income tax. In some cases, there may be IRS imposed penalties for IRA distributions. Under other circumstances, such as death, first time home purchase, disability, education and attainment of age 59 ½, your Traditional IRA distributions may be free from IRS imposed penalties.
Distributions from a Roth IRA have complex tax implications at this time and we advise you speak with your tax advisor, accountant, or attorney before proceeding with this type of transaction.
Required Minimum Distributions (RMD)
Beginning in the tax year in which you become 70 ½ years of age,
the IRS requires that you begin taking a specified amount from your Traditional
IRA each year. This is known as the Required Minimum Distribution (RMD).
The amount you must "distribute" each year will vary based upon
governmental tables. Our Financial Counselors are retirement specialists
and can help you calculate your RMD if you so desire.
IRS 590 Supplement, Life Expectancy Tables (see Appendix C)
