When it comes to the topic of Individual Retirement Accounts (IRAs), it’s important to note that there is some flexibility with funds invested in these accounts. See this news item from Forbes:
“Since IRAs offer certain tax advantages, there are restrictions on withdrawals and transfers to and from the accounts. Generally, if you pull money out of an IRA before you reach age 59-1/2, you must include the funds in income (subject to certain rules and limitations) for the year in which you make the withdrawal. However, if you pull out funds in order to put them in another retirement plan, it’s referred to as a rollover and if done properly, is considered a tax-free distribution.”
It’s not too late to make a contribution for 2012. The First National Bank & Trust of Newtown has a team of professionals standing by to assist customers with personal IRA accounts. If you have questions, Email us at firstname.lastname@example.org or call us at 215-860-9100.