In a Traditional IRA you can make tax-deductible contributions up to $5,000 per year (up to $6,000 if age 50 or older).
While there are certain restrictions concerning when you can and when you must (age 70½) begin taking distribution, your investments earn income in your IRA tax deferred.
If you are about to retire or change jobs, 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 American National Bank IRA Rollover Trust can help avoid unnecessary taxation, provide experienced investment management, protect your retirement savings, and help you meet your retirement planning goals.
Conduit IRAs are very similar to IRA Rollovers in that they can hold assets received from a distribution 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.
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.
Educational IRAs are an easy way to help fund the education costs of children or grandchildren.