IRAs

Writing a check

 

TRADITIONAL IRA

Funds are invested in a 12 month CD.  The tradition IRA allows you to defer taxes on your earnings until they are withdrawn.  Certain contributions are tax deductible in the tax year for which they are made.

 
ROTH IRA

Funds are invested in a 12 month CD.  Unlike a traditional IRA, a Roth IRA is a nondeductible account that features tax-free withdrawals for certain distribution reasons after an initial holding period.  Since Roth IRA contributions are nondeductible and taxed in the year they are earned, people who expect to be in a higher tax bracket when they retire may benefit more from these accounts than from a traditional IRA.

 
COVERDELL EDUCATION SAVINGS ACCOUNT (EDUCATION IRA)

The Coverdell Education Savings Account is a nondeductible account that features tax-free withdrawals for a very specific reason, a child’s higher education expenses.  Qualified higher-education distributions from a Coverdell Education Savings Account are penalty-free and tax-free.
 

Please contact Basin State Bank for current rate and annual percentage yield on the IRA CD, as well as other types of IRA accounts offered.  Contribution limits vary from year to year.

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