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IRA / Health Savings Accounts

IRAs – Individual Retirement Accounts 

Saving money for your retirement is the most important way you can prepare for a secure financial future. Let F&M Bank help you choose the right IRA for your golden years. Contributions may lower your current tax bill, and you may be able to earn a higher interest rate than with a non-retirement account.

Features common to all F&M Bank IRA Accounts:

  • Minimum Opening Deposit – $250 ($100 with IRA Plus).
  • Interest Earnings – Interest earnings are posted to your account quarterly.
  • Deposits – Can be made at any time … and you may be able to deduct IRA contributions made between Jan. 1 and April 15 on your previous year’s tax return.*
  • Withdrawals – The IRS may impose a penalty for pre-mature withdrawals.

For F&M Online Retirement Calculatorsclick here.

Traditional IRA

With a Traditional IRA, you can benefit from possible tax-deductible contributions and earnings that grow tax deferred.

  • Contributions may be tax-deductible, or you may be able to make non-deductable contributions.*
  • Earnings that remain invested are tax-deferred.
  • Taxes are paid at the time of distribution (usually after retirement).
  • You are eligible to contribute if you've earned income and won't be 70½ years of age by December 31.
  • Account Statements – Mailed annually
  • Current CD / IRA Rates – click here.

For more information about Traditional IRAs, click here.
For more information about Traditional IRAs: Understanding Required Distributions at 70 ½, click here

Roth IRA

A Roth IRA may be appropriate for investors with growing earning potential who expect the same or higher tax rate in retirement.

  • Contributions are made after tax, but earnings can remain invested tax-free.*
  • Qualified distributions are tax-free after age 59½
  • For more information about Roth IRAs, click here.

Rollover IRA

If you're leaving a job, retiring or have money left in a former employer's retirement plan, you may want to consider rolling over your plan account balance to an F&M Bank IRA. 

  • Eligible distributions from an employer-sponsored retirement plan can be directly transferred into a Rollover IRA.
  • Direct rollover avoids 20% withholding requirement on distributions from employer-sponsored plans.

SEP – Simplified Employee Pension

Self-employed individuals and small business owners can contribute to a retirement plan with higher contribution limits than other types of IRAs.

  • All eligible employees are covered.
  • Any contributions in a SEP are 100% vested immediately.
  • Administration may be simpler than a 401(k) plan.
  • Earnings can grow tax-deferred. 

IRA Plus

This unique TIERED IRA makes it easy to start small and work your way up to significant retirement savings.  As an example, with every paycheck, you can choose to make an automatic transfer of a modest amount directly into your IRA Plus account. 

  • Opening Deposit – $100
  • Tiered Interest Rates – Earns higher interest based on higher balances. Interest rates are variable.
    • $ 0 - $ 2,999
    • $ 3,000 - $ 9,999
    • $ 10,000 - $ 24,999
    • $ 25,000 - $ 49,999
    • $ 50,000 - $ 99,999
    • $100,000 and above
  • Current Tiered Interest Rates – click here.
  • Deposits – Can be made at any time.
  • Withdrawals – The IRS may impose a penalty for pre-mature withdrawals.*
  • Account Statements – Mailed quarterly.

HSA – Health Savings Account

Health Savings Accounts (HSAs) offer flexible way to pay for personal health care expenses, co-pays and deductibles. To qualify, you must be covered by a high-deductible health plan (HDHP).  HSAs let you save for current and future health care expenses on a tax-free basis.  You control the money in your HSA and make decisions on how and when to spend the money.

For more information about Health Savings Accounts, click here.

*Consult with a qualified financial adviser for tax advice regarding IRAs.