IRAs are investment tools that specifically help an individual set aside money that is earmarked for retirement. Individuals can contribute funds up to a set maximum amount. Income earned on these contributions is tax-deferred until the funds are distributed after the individual reaches age 59 ½ or later. Guthrie County State Bank offers two different types of IRA investments.
- Tax deferred until distribution at age 59 ½
- No bank administration fees
- 10% tax penalty for premature distribution (prior to age 59 ½)
- Consult your tax advisor for your annual maximum contribution amounts
- You and your beneficiaries would not pay any federal income tax on the contribution amount when distributed, because you cannot claim a tax deduction for your contributions.
- The earnings of a qualified distribution will not have to be included in your taxable income by you and your beneficiaries.
- There are no required distributions while you are alive. Your beneficiaries will be required to receive distributions over a number of years.
- 10% excise tax on the taxable portion of a distribution prior to age 59 ½
Contact us for current rate information and contribution levels
For more information about investment options, please visit GCSB Investment Center.