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.
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Non-deductible contributions are withdrawn tax-free.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.
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.
|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|DISTRIBUTION TAXATION||Earnings are subject to taxation when withdrawn. Contributions are subject to taxation when withdrawn||Earnings are not subject to taxation after 5 years under the following:
||Earnings are not subject to taxation if used for education purposes Contributions are not subject to taxation when withdrawn|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.