Tax-Deferral Retirement Plans
With
a FENB Retirement Account you can put your retirement funds to work,
earning our high-yield 18-month Time Deposit rates, tax-deferred and
insured to $100,000.
| Account Type |
Minimum Opening Deposit |
Minimum Balance to obtain Annual Percentage Yield |
Interest Rate |
Annual Percentage Yield * |
| Tax-Deferred Retirement Account |
|
|
|
|
| $500,000.00
and up |
$1,000 |
$500,000 |
2.99%
|
3.00%
|
| $100,000.00
to $499,999.99 |
$1,000 |
$100,000 |
2.99%
|
3.00%
|
| $50,000.00
to $99,999.99. |
$1,000 |
$50,000 |
2.99%
|
3.00%
|
| $25,000.00
to $49,999.99 |
$1,000 |
$25,000 |
2.99%
|
3.00%
|
| $10,000.00
to $24,999.99 |
$1,000 |
$10,000 |
2.99%
|
3.00%
|
| $1,000.00
to $9,999.99 |
$1,000 |
$1,000 |
2.99%
|
3.00%
|
| $0.01
to $999.99 |
$0 |
$0 |
0.50%
|
0.50%
|
|
Updated on: 05/6/08 |
|
|
|
|
| *APY - Annual Percentage
Yield. APY is accurate as of the updated date reference above.
Rates are subject to change without notice. Fees could reduce
earnings on the account. An early withdrawal penalty will apply
if the account is closed prior to maturity date, which may reduce
your interest income. Please check with our branches for updated
account information including our list of miscellaneous fees and
charges. |
||||
FENB
offers a variety of retirement plans to provide tax-deferred investment
opportunities for your retirement portfolio. Funds are invested in fixed-rate
time deposits that guarantee your rate of return for the term of the
account, and provide an easy to maintain, safe way to plan for your
future with tax-deferred savings.
Individual Retirement Account (IRA)
An
FENB IRA offers the advantage of making tax-deductible contributions
for most individuals while accumulating tax-deferred earnings in an
FDIC insured investment account.
Whether
you are starting to plan for retirement or receiving a retirement plan
distribution, you'll find our retirement time deposit the perfect place
for your funds. Several IRA funding options are available at FENB, including
contributory accounts, spousal accounts, rollover accounts, and the
new Roth IRA accounts.
If
both you and your spouse have earned income, each of you may contribute
100% of earned income up to $3,000 each year. Combined spousal contributions,
for spouses who have little or no income, may not exceed $4,000 per
year (effective 1/97.)
Generally,
your IRA contributions are fully deductible up to $2,000 ($4,000 under
spousal rules) if you meet the following conditions:
- You (you and your spouse, if married) do not participate
in a retirement plan;
- you are single, and your adjusted gross income
(AGI) is $30,000 or less and the threshold will increase incrementally
each year until 2007 when it will be $50,000; or you are married,
file jointly, and your combined adjusted gross income (AGI) is $50,000
and the threshold will increase incrementally each year until 2007
when it will be $80,000.
Partial deductions are also available for individuals
and married couples with incomes above these adjusted gross income levels.
Contact us for details.
Simplified Employee Pension Plans (SEP)
Many
business owners can establish a simple, inexpensive retirement plan
for their business, even if they have no employees other than themselves.
A
SEP is simply a written arrangement under which an employer contributes
money to the employees' IRA accounts. Once in the IRA, these funds are
much like any other IRA funds, whereby the employee directs the investment
and administration of the IRA. The employer is not involved in the assets
once the contributions have been made to the employees' own IRAs. This
feature virtually eliminates the paperwork and administrative requirements
for the business owner.
Roth IRA
The
Roth IRA is a nondeductible account that features tax-free withdrawals
for certain distribution reasons after a five-year holding period.
The
income you earn on funds you put in a Roth IRA will not be taxed, under
present tax law, if you follow the rules. You can withdraw your principal
any time, and there are certain penalty-free and tax-free withdrawals
of the income for buying a home, paying for education and medical emergencies.
There
are two basic requirements for eligibility to contribute to a Roth IRA:
- You must have earned income (or your spouse must
have earned income) and
- Your modified adjusted gross income (MAGI) must
be within certain limits.
Roughly, singles who earn less that $110,000 and married
couples who earn less than $160,000 qualify for a Roth IRA. You may
contribute any amount up to 100% of your earned income or $3,000 per
year, whichever is less, as long as your MAGI is within prescribed limits;
however, your contribution is not tax-deductible.
For more detailed information on all our retirement
accounts:
Call:
213-687-1200
Write:
Far
East National Bank
Retirement Plans Administration
Two
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