The Financial Security You Are Looking For
The worrisome state of Social Security has been widely publicized in recent years. It is uncertain what level of benefits any of us can expect to receive once we reach retirement.
Therefore, why would you count on Social Security to be your sole source of retirement income? The simple answer is you shouldn’t. Maybe you are fortunate enough to be a participant in your company’s retirement plan. However, even these two benefits combined together may not be enough to fund the kind of retirement you envision.
This is where an Individual Retirement Account (IRA) can step in to provide the level of financial security you are looking for. With an IRA, you can make tax-advantaged contributions throughout your working life, plus your contributions and earnings continue to grow tax-deferred until you need to take distributions.
American National Bank & Trust can help you design an IRA to meet your specific retirement needs. We offer two distinct investment management alternatives:
- Self-Directed IRA: Allows you to make your own investment decisions.
- Investment Management IRA: Allows you to give full discretionary investment powers over your account to our professional investment staff.
Contact one of our trust representatives today to see how an American National Bank & Trust IRA can reduce taxes, provide experienced investment management, and help protect your retirement savings.
IRA Options
Roth IRA
Roth IRAs are funded with after tax contributions and allow your earnings to grow tax-free.
A major benefit of this type of IRA is that under most circumstances you can make tax-free withdrawals.
IRA Rollovers
If you are nearing retirement or a job change, and you have participated in your employer’s retirement plan, you may soon be eligible to receive a substantial sum of money from the plan.
You can receive your distribution as a single lump sum pay-out or other “eligible rollover distribution,” either of which can be rolled into an Individual Retirement Account (IRA) to secure tax advantages.
IRA Rollovers offer significant tax advantages. When you receive an eligible rollover distribution from your employer’s qualified plan, you can defer paying tax by rolling the distribution over into an IRA. You postpone paying tax until distributions begin, and the income generated by investing your eligible rollover distribution will also continue to grow on a tax-deferred basis.
If you face investment management decisions associated with a lump sum pay-out of retirement funds, contact one of our trust representatives to see how an IRA Rollover Trust can help avoid unnecessary taxation, provide experienced investment management, protect your retirement savings, and help you meet your retirement planning goals.
Traditional IRA
In a Traditional IRA you can make tax-deductible contributions (subject to annual contribution limits).
While there are certain restrictions concerning when you can and when you must begin taking distributions, your investments earn income in your IRA tax deferred.
Conduit IRA
Conduit IRAs are very similar to IRA Rollovers in that they can hold assets received from an employer-sponsored retirement plan. However, to maintain Conduit IRA status, the IRA may not receive contributions from any other sources, such as regular IRA contributions.
Rolling over your distribution from a qualified plan into a Conduit IRA enables you to preserve the tax-deferred status of your contributions and allows you to later roll these assets into another qualified plan.
Benefits
- Defer income tax on contributions
- Reduction of federal income taxes
- Professional investment management
- Wide array of investment options
- Timely and accurate tax reporting
- Distributions after retirement that comply with federal requirements
- Proper disposition of your retirement assets after your death