Individual Retirement Accounts

Planning ahead for your retirement? The Individual Retirement Account (IRA) is a government established account type which encourages individuals to save for their retirement. The benefits of an IRA include tax-deferred earnings and in some cases, tax deductibility. The Farmers Bank of Appomattox offers IRAs in the form of a savings account or a certificate of deposit. Call for rate information.

Jane Thomas
Assistant Vice President and Assistant Branch Manager

An IRA is a smart, easy way to prepare for your retirement while offering you possible tax advantages. Maximum contribution in any year is limited to IRS regulation. See your tax advisor for possible tax benefits.

Choose from Traditional or Roth IRA
Select from Variable rate Savings Plan or 5 year fixed rate Certificate of Deposit
Begin to take withdrawals at age 59 ½ without IRS penalty
Distribution is mandatory at age 70 ½ from Traditional IRA
Bank and/or IRS penalties may apply

If you have retired or changed jobs and are about to receive a distribution from a qualified pension plan, you may choose to roll these funds into a traditional IRA. Talk with your financial or tax advisor before taking a distribution. If you have an IRA maturing at another financial institution, you have a choice of rolling these funds into a Farmers Bank Traditional or Roth IRA. Funds must be deposited within 60 days of receipt to defer applicable taxes until retirement.

Rates current as of 05-15-2013:

Fixed rate	APY 1.40%
Variable rate	APY 0.65%

Fees may reduce earnings and a penalty may be applied for early withdrawal and may affect the availability of the sums disclosed.

There will be quarterly adjustments for the variable rate IRA, based on the 13 week treasury bill rate, as reported in the Wall Street Journal.