Individual Retirement Account
Prepare for retirement and gain tax advantages while saving with Itasca Bank & Trust Co. The following types of IRAs are available to fit your needs and investment objectives:
Traditional IRA
- Contributions (in most cases) are tax deductible, which saves money on income taxes paid each year
- Builds income for retirement
- Defers taxes
- FDIC insured - so your money is secure*
- Funds may be withdrawn for higher education or first time home buying (up to $10,000.00)
- Earns interest
- Flexible methods of contribution and distribution
- Quarterly reporting to account holders
For 2020 Contributions:
- Standard Contribution: $6,000.00
- Catch-Up Contribution (Age 50 ): $1,000.00
The tax deadline has been extended to July 15, 2020. Since the deadline was extended, you are now able to make Prior Year Contributions to IRA accounts until that deadline.
The Department of the Treasury and the Internal Revenue Service is continuing to make changes impacting tax reporting. As previously communicated, tax form 5498 originally scheduled for processing on April 17, 2020 will be postponed. We will post an update once the processing has been rescheduled.
If you continue to make Prior Year Contributions to an IRA from April 17–July 15, a process will be in place to make electronic or manual tax reporting corrections that will be submitted to the IRS on your behalf because of the tax deadline extension.
Roth IRA
- Contributions are not tax deductible, but qualified distributions are tax-free after a 5-year holding period
- No mandatory distributions required at the age of 70 1/2 or older
- Funds may be withdrawn for higher education or first time home buying (up to $10,000.00)
- FDIC insured - so your money is secure*
- Earns interest
- Flexible methods of contribution and distribution
- Quarterly reporting to account holders
For more information about any of these products contact our Customer Service Department.
When sending an email to anyone at Itasca Bank & Trust Co., please do not include passwords, account numbers, or any other confidential financial or personal information.
*Each depositor insured to at least $250,000.
