Individual Retirement Accounts (IRAs) are a great way to save for your future. That’s why First Mid makes it simple to open IRAs. We offer a wide variety of IRA options for you to choose from to help you get started and on your way to saving for the future!
Traditional IRAs allow you to defer taxes on your contribution earnings until they are withdrawn. You are eligible to establish a Traditional IRA if you are under the age of 70-1/2 for the entire tax year and either you or your spouse has earned income. There are limitations on how much you can contribute to a Traditional IRA; however, if you are age 50 and older, you can choose to make additional catch-up contributions. All earnings on your contributions will remain tax-deferred until you make withdrawals from the account. They are then taxed as income in the year they are withdrawn.
Roth IRAs allow only non-deductible contributions. Withdrawals on your out-of-pocket contributions are always tax-free. However, withdrawals on your earnings are only penalty and tax-free after a five-year holding period and attaining age 59-1/2. You are eligible to contribute to a Roth IRA if you or your spouse has earned income and if your modified adjusted gross income (MAGI) has not exceeded certain limits. A Roth IRA allows you to continue making contributions after age 70-1/2.
First Mid offers a variety of interest rates and terms with our IRA Savings Accounts! A variable rate IRA earns a variable rate of interest and there is no set maturity date. Interest earned may be tax-deferred or free, based on the type of IRA. All accounts require a minimum opening deposit of $500 with terms ranging from 12 months to 60 months. However, a penalty may be imposed for early withdrawals.
For more information, contact a First Mid customer service representative.
