Home : Products & Services : IRA Accounts

Contact:
Julie Wieneke, Main Bank
Helen Wegmann, Main Bank
Kim Pins, Dubuque Office
Diane Steffen, Luxemburg
Susan Osterhaus, Guttenberg
Eileen Bearinger or Jeanne Heineman, Oelwein

Traditional, Roth & Education IRA's are available at Fidelity Bank & Trust. We offer a time-open account where you have just one account to keep track of, or lock your rate into any CD term. The interest rate changes on the first day of each month. The interest is compounded quarterly and an annual status report is mailed. Contributions may be tax deductible and earnings can be tax free or tax deferred depending on the type of IRA chosen. IRA's are essential for a comfortable retirement. A minimum deposit of $50 is required to open an IRA account.

What's a ROTH IRA?
A Roth IRA is a nondeductible account that features tax-free withdrawals for certain distribution reasons after a 5 year holding period. You must have earned income and fall within certain income guidelines to contribute. No withdrawals are required once the account holder reaches 70 1/2 years of age. You may contribute up to $5,000 per qualified individual in 2008. Individuals age 50 and older may make additional contributions up to $1000 as a "catch-up" contribution. Earnings on the account may grow tax free if certain conditions are met.

What's a TRADITIONAL IRA?
A traditional IRA may be tax deductible. Deductibility is based on three factors; (1) active participation in an employer sponsored retirement plan, (2) federal income tax filing status (joint, single, married filing separately); (3) modified adjusted gross income. Earnings are tax deferred, and are taxable at the time of withdrawal. Withdrawals are required at the age of 70 1/2. Contributions up to $5,000 per qualified individual may be made in 2008. Individuals age 50 and older may make additional contributions up to $1000 as a "catch-up" contribution.

What's an EDUCATION SAVINGS ACCOUNT?
A Coverdell Education savings account is an account set up for the benefit of a child, to save money on a tax deferred basis, for higher education expenses. Contributions are not tax deductible, but withdrawals from the account for educational expenses are tax free and IRS penalty free. The maximum contribution allowed is $2,000, and must be made by April 15 for the previous year.