Roth IRA Accounts

The contributions to a Roth IRA account are non-deductible funds.

Roth Requirements:

Contribution Limits for 2009 and 2010
An individual under 50 years old may open an IRA account with the lesser amount of $5,000 or 100% of their earned income. An individual over 50 years old may contribute the lesser amount of $6,000 or 100% of their earned income.

Distributions (including earnings) are potentially tax and penalty free if the individual satisfies certain distribution conditions.

Starting in 2010, there are no restrictions on who can convert their Traditional IRA to a Roth IRA. By converting the funds in your Traditional IRA to a Roth IRA these funds grow tax-free. Down the road, when you are ready to take your funds out they are tax-free distributions.

What's more, 2010 is a good time to convert, because there is a special tax rule that applies. For conversions made in 2010 only, you can opt to have none of the converted funds taxed for 2010. Instead, the conversions income may be split over the following two years so that half the converted amount is taxed in 2011 and the other half in 2012.

Before proceeding with a conversion of funds, please see advise from a tax accountant.

FNB Accounts:

Variable: Variable interest rate accounts are available where multiple deposits may be made throughout the year until the goal is met. Minimum deposit is $25.

Fixed: Fixed interest rate accounts are available where a lump-sum amount is deposited at the time of opening. Minimum deposit amount is $500.

Statements: Each account holder is provided with annual and periodic interest statements.

Fees: We do not charge any service charges or administrative fees.

Auto Transfer: We offer automatic transfers from another FNB deposit account into your IRA account free of charge.

FDIC Insurance up to $250,000 for each individual's total retirement plan.

For current IRA Rates, please click here

For information about Traditional IRA accounts, please click here.