Here at the First National Bank in Pratt, we're proud to offer our customers a variety of Financial Services along with our other banking products. To learn more about how we're working for you, click on the products that interest you:
Individual Retirement Account (IRA)
Certificates of Deposit (CD's)
Young Investor's CD
If you need additional information or have any questions, please contact our Financial Specialists at (620) 672-6421.
Individual Retirement Account (IRA)
Start planning now for your retirement with an Individual Retirement Account (IRA). We are ready to help you choose the one that is right for you!
Traditional IRA's - This type of IRA allows any person to contribute a maximum of $4,000 per year to their plan.
The following types of people are eligible to fully deduct their yearly IRA contributions:
• Single individuals who are not active participants in an employer-sponsored retirement plan;
• Single individuals who are active participants and their MAGI is $50,000 or less;
• Married individuals filing jointly who are not active participants and their spouse is not an active participant;
• Married individuals filing jointly who are not active participants--but their spouse is an active participant--whose MAGI is $150,000 or less;
• Married individuals filing jointly who are active participants and their MAGI is $70,000 or less.
The earnings with this account grow tax deferred, and a person with this IRA is allowed to make contributions to the account until they reach the age of 70 1/2. Also at this age they must begin taking distributions from their account.
The New Roth IRA - The Roth IRA was introduced through the Taxpayer Relief Act of 1997. With this type of account a person's contributions are not deductible, but the interest and earnings accumulate tax-free . The contribution limit still remains at a maximum of $4,000 per year for people with an adjusted gross income for single filers of less than $95,000, and for joint filers it must be less than $150,000 to qualify for the maximum $4,000 contribution. The maximum contribution decreases with higher adjusted gross incomes. The contributions, unlike the traditional IRA, can be made at any age, even over 70 1/2. At the age of 59 1/2 a person is able to start making withdrawals. The earnings can be withdrawn tax-free if the funds have been in the account for at least five years. However, prior to age 59 1/2, the original contributions (not interest or earnings) can be withdrawn without tax penalty for higher education expenses, and up to $10,000 towards a first time home purchase. There is also no requirement to take distributions once a person reaches age 70 1/2.
Certificates of Deposit (CD's)
Certificates of Deposit (CD's) are available at various rates and maturities. At the customers option, interest may be paid monthly by check or to another account, or can be paid back to the CD on a quarterly basis. Early withdrawal penalties apply. Our offering rates may change at any time.
Our Young Investor's CD is designed to help youngsters age 18 and younger save. This CD requires a minimum deposit of only $100 and interest is based on an annual percentage rate. Our Young Investor's CD's have a three year maturity and early withdrawal penalties do apply. Our offering rates may change at any time. You can add to the CD at anytime with $25 or more.
Friends and relatives can also add to the account. What an easy way to help young investors save for college, their first car, or for whatever the future may bring!
First National Bank in Pratt,
working for you!
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
WHAT THIS MEANS FOR YOU: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying information.
DISCLAIMER Product offers, rates, terms and other information provided herein are subject to change without notice. Due to occasional inaccessibility to our web site, First National Bank cannot guarantee the completeness or accuracy of the information provided herein. The information provided to you in Calculators is estimated, and provided solely for your interactive enjoyment. The results are not guaranteed to be accurate, and in no way endorsed, offered or guaranteed by First National Bank. The appropriate disclosures will be mailed to users who open accounts with First National Bank. You may request these documents before opening your account(s), or verify current offers, by calling 620-672-6421.