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IRA options

IRA Accounts

Traditional IRA*

This plan provides a personal savings plan for the future. MNB offers several retirement account options, from MMIRA to Certificates of Deposit, each designed to meet individual needs and lifestyles. Contributions may be fully or partially tax deductible. Earnings are tax deferred until withdrawal.

Roth IRA*

This plan is available to married couples and single filers. Non-deductible contribution limits phase out based on Adjusted Gross Income.

Non-deductible contributions are withdrawn tax-free. Withdrawals of earnings are tax-free when held in the account at least five years and you are over age 59 1/2. Required distributions based on age do not apply. With taxable compensation, contributions are allowed after age 70 1/2.

Education IRA*

This plan is a great way to save for a child's education. The non-deductible annual contribution can not exceed IRS limits and distributions for qualified purposes are tax-free. This plan is being offered with no annual fees. Funds can be invested in either money market or certificate products.

IRA Options

 
CONTRIBUTION ELIGIBILITY
TRADITIONAL IRA* Must be under age 70 ½ for the entire year with earned income, no income restrictions
ROTH IRA* May be any age with earned income, income may not exceed: $184,000 and phased out to $194,000 for couples and $117,000 for individuals & phased out to $132,000
Coverdell Education Savings Account May be made for children 18 and under, contributor’s income may not exceed: $220,000 for couples and individuals.
INTEREST RATES
TRADITIONAL IRA* Funds can be invested in either money market or CD products
ROTH IRA* Funds can be invested in either money market or CD products
Coverdell Education Savings Account Funds can be invested in either money market or CD products
CONTRIBUTION LIMITS
TRADITIONAL IRA* Total Traditional and Roth contribution cannot exceed $6,500 annually **
ROTH IRA* Total Traditional and Roth contribution cannot exceed $6,500 annually **
Coverdell Education Savings Account Total per child contribution cannot exceed $2,000 annually per beneficiary
TAX DEDUCTIBILITY OF CONTRIBUTION
TRADITIONAL IRA* Contribution may be fully or partially tax deductible
ROTH IRA* No
Coverdell Education Savings Account No
DISTRIBUTION REQUIREMENTS
TRADITIONAL IRA* Required at age 70 ½
ROTH IRA* None
Coverdell Education Savings Account Qualified higher education expenses
DISTRIBUTION TAXATION
TRADITIONAL IRA* Earnings are subject to taxation when withdrawn. Contributions are subject to taxation when withdrawn
ROTH IRA* Earnings are not subject to taxation after 5 years under the following:
  1. First-time home purchase
  2. Age 59 ½
  3. Death or disability
Contributions are not subject to taxation when withdrawn
Coverdell Education Savings Account Earnings are not subject to taxation if used for education purposes Contributions are not subject to taxation when withdrawn
  TRADITIONAL IRA* ROTH IRA* Coverdell Education Savings Account
CONTRIBUTION ELIGIBILITY Must be under age 70 ½ for the entire year with earned income, no income restrictions May be any age with earned income, income may not exceed: $184,000 and phased out to $194,000 for couples and $117,000 for individuals & phased out to $132,000 May be made for children 18 and under, contributor’s income may not exceed: $220,000 for couples and individuals.
INTEREST RATES Funds can be invested in either money market or CD products Funds can be invested in either money market or CD products Funds can be invested in either money market or CD products
CONTRIBUTION LIMITS Total Traditional and Roth contribution cannot exceed $6,500 annually ** Total Traditional and Roth contribution cannot exceed $6,500 annually ** Total per child contribution cannot exceed $2,000 annually per beneficiary
TAX DEDUCTIBILITY OF CONTRIBUTION Contribution may be fully or partially tax deductible No No
DISTRIBUTION REQUIREMENTS Required at age 70 ½ None Qualified higher education expenses
DISTRIBUTION TAXATION Earnings are subject to taxation when withdrawn. Contributions are subject to taxation when withdrawn Earnings are not subject to taxation after 5 years under the following:
  1. First-time home purchase
  2. Age 59 ½
  3. Death or disability
Contributions are not subject to taxation when withdrawn
Earnings are not subject to taxation if used for education purposes Contributions are not subject to taxation when withdrawn

 

* Penalty may be imposed for early withdrawal. In addition, early withdrawal of IRA funds requires an IRS penalty.
** Contributions can be up to $6,500 if you are 50 or older.
A closing fee may be imposed, reducing earnings on the account.