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IRA types

April 9th, 2013

An IRA can essentially be looked upon as a savings account to help individuals accumulate money for retirement. These accounts require certain contributions each year until a pre-designate retirement age. Depending on your specific needs and qualifications, there are several types of IRAs, including traditional IRAs, Roth IRAs, SEP IRAs and Simple IRAs. All IRAs are FDIC insured for up to $250,000.

Traditional IRAs are tax-deferred retirement accounts, allowing you to put off paying taxes until you withdraw money in retirement. Roth IRAs take money from your already-taxed income, which allows you to withdraw money in retirement without paying taxes again. SEP and simple IRAs are used primarily by small business owners or self-employed individuals.

At First National Bank & Trust, there is no fee when you open an IRA. Unlike a conventional savings account, money put into an IRA is tax-free. If you prefer not to deposit a lump sum, we have an option called a Savings IRA which is guaranteed. Our experts map out how much you can afford to deposit on a monthly basis and how often the money will be deposited during the year. There is also an option of having a designated amount automatically taken out, via direct deposit.

If your taxes are complete for 2012, then consider using your tax refund as a way to start your IRA savings plan for 2013.

Additional information is available on a more detailed level from The First National Bank & Trust Company of Newtown. We can be reached at 215-860-9100 or Our experts would be happy to sit down and analyze your situation to find the retirement plan that works best for you.

Lynn G. Gessner

Vice President/CISP

IRA Department/Customer Call Center

The First National Bank

40 S. State Street

Newtown, PA 18940