Simplified Employee
Pension IRA
Variable & Fixed Rate
Description:
The traditional IRA account which allows you to contribute earned income and defer taxes on contributions & earnings until they are withdrawn.
Good for beginning a retirement savings
Contributions are taxed going into IRA account, but no tax is paid on qualified withdrawals
Designed specifically for those saving for educational purposes
For employers who want to provide a tax-advantage savings method for themselves and their employees
Minimum Opening Deposit:
$500
$500
$100
$100
Terms:
12 Months,18 Months,
and 24 Months
12 Months & 18 Months
12 Months & 18 Months
12 Months & 18 Months
Tax Deferral Status:
Contributions may be tax deductible**
Earnings are taxed deferred until withdrawn
Contributions are not tax deductible**
No taxes paid on qualified withdrawals of earnings
Contributions are not tax deductible**
No taxes paid on withdrawals of funds for qualified education expenses
Contributions are tax deductible to employers**
Taxes are deferred until withdrawn
Allowable Contributors:
Individuals under
70 1/2 years of age
Individuals with earned income subject to modified adjusted gross income limits
Anyone can contribute for the benefit of an individual who is under age 18.
(exceptions apply for 18+)
Subject to modified adjusted gross income limits
Contributions are made by employer to IRA accounts for eligible employees
Withdrawal Information:
A 90-day interest forfeiture penalty
applies to any non-qualified early
withdrawals*
Regular retirement withdrawals can
be made as early as age 59 1/2 and
must begin once a participant
attains age
70 ½*
A 90-day interest forfeiture
penalty applies to any non-qualified
early withdrawals*
Contributions may be
withdrawn at any time without
taxation.*
Qualified withdrawals of earnings
may be made without taxation after
five years*
A 90-day interest forfeiture
penalty applies to any non-qualified
early withdrawals*
No taxes or IRS penalties paid on
withdrawals for qualified educational
expenses*
A 90-day interest forfeiture
penalty applies to any non-qualified
early withdrawals*
Regular retirement withdrawals
can be made as early as age 59 1/2
and must begin once a participant
attains age
70 ½*
Account Dates:
Must open account and all contributions must be made by tax filing deadline (usually April 15)
Must open account and all contributions must be made by tax filing deadline (usually April 15)
Must open account and all contributions must be made by tax filing deadline (usually April 15)
SEP-IRA Plan must be established by tax filing deadline. Contributions must be made by tax filing deadline plus extensions
Contribution Information:
Individuals: 100% of earned income up to $3,000
Working married couples: 100% of earned income up to $6,000
Married couples: 1 spouse not working up to $6,000 combined
Individuals 50 years and older may also make a $500 catch-up contribution
Individuals: 100% of earned income up to $3,000
Working married couples: 100% of earned income up to $6,000
Married couples: 1 spouse not working up to $6,000 combined
Individuals 50 years and older may also make a $500 catch-up contribution
Modified adjusted gross income limitations apply
$2,000 per beneficiary
Modified adjusted gross income limitations apply
Employee contribution is based upon an adjustment of net income and can be as high as 25% of the salary or $41,000 per year
Benefits:
Variable and fixed rates options allow for flexibility in interest earnings
Contributions may be tax
deferred and earnings are tax
deferred until withdrawn**
No taxes on the interest earned on the account
Variable and fixed rates offered
Allows parents and children to plan ahead for costly higher education expenses
Tax-free method of paying for education expenses
Contribution limits are much higher than for individual accounts
*
IMPORTANT NOTE: Federal
regulations may require
substantial penalty for early
withdrawal of funds from a time
deposit.
** NOTE: You should consult your
Tax Advisor regarding the tax
benefits of contributing to an
Individual Retirement Account.
Please Note: This information is accurate as of
March 2008.
Central Valley Community Bank reserves the right to make changes at any time as a result of a change of policy, law, and regulation or otherwise.
