Individual Retirement Accounts (IRAs)
First Community Bank offers the right IRA for you! Today’s IRA still offers tax-deferred interest on all your deposits. The earnings on your IRA investments accumulate tax-free until you withdraw the funds. Interest is compounded quarterly, giving you a higher yield. At First Community Bank, we offer the following individual retirement accounts:
The contributions you make may be tax deductible. So instead of paying taxes now, you’ll pay taxes on the money your IRA earns when you withdraw it. If you’re in a lower tax bracket at that point, you’ll pay taxes at a lower marginal income tax rate.
Roth IRA contributions are made with after-tax assets, all transactions within the IRA have no tax impact, and withdrawals are usually tax-free. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a traditional IRA.
Coverdell Education Savings Accounts (Educational IRA)
The Coverdell ESA allows for a maximum annual contribution of $2,000 per student. The earnings in the account grow tax-free as long as distributions are used for eligible expenses, which are not limited to college costs. The funds in a Coverdell can also be used to cover costs associated with attending elementary or secondary school, be it public, private, or religious. These costs can include uniforms, computers, and transportation. Funds must be used by the time the beneficiary turns 30 years old.
Simplified Employee Pension Plan (SEP)
A simplified employee pension plan that allows both employer and employee contributions, similar to a 401(k) plan, but with lower contribution limits and simpler (and thus less costly) administration.
U.S. Savings Bonds
U.S. Savings Bonds are an investment instrument issued and fully backed by the U.S. Government. Guaranteed rate of return. Cost is half the face value. Available face values are, $50, $75, $100, $200, $500, $1,000 and $10,000.
We want to help and make your future secure. Contact us at (956) 399-3331 or visit your nearest First Community Bank location.