Individual Retirement Accounts

It's never too early or late to plan for retirement

Start building your retirement nest egg with an Individual Retirement Account. It's a valuable tool because it offers tax incentives, provides financial security, allows for flexible contributions, and accessible distributions. IRAs offer distinct advantages to every working person. The combination of tax-deductible IRA contributions and tax-deferred IRA earnings presents substantial tax saving opportunities.

Brotherhood Bank & Trust offers a variety of IRA accounts. The type of investment vehicle for funds depends on your investment objectives or philosophy, the size of the IRA fund, and your personal needs. IRA plans can hold FDIC insured certificates of deposit, stocks, bonds, mutual funds, annuities, government securities, or a combination of these which are not FDIC insured.

Our investment officers will take the time to discuss the investment options before recommending any specific program. Our goal is to help you create a personal investment plan that fits your requirements.

Traditional IRA

Funds contributed grow tax-deferred and may be tax-deductible. This type of IRA is available to persons under age 70 ½ with earned income or to non-working spouses. Contributions may be up to $5,000 per tax year or $6,000 per tax year for individuals 50 years of age and older. Minimum opening contributions, early withdrawal or compensating fees may apply depending on the investment option. A low annual custodial fee applies.

Roth IRA

Contributions grow tax-deferred. Qualified distributions (including earnings) are tax-free. This type of IRA is available to persons with earned income or to non-working spouses, regardless of age, subject to income limitations. Contributions may be up to $5,000 per tax year or $6,000 per tax year for individuals 50 years of age and older. Minimum opening contributions, early withdrawal or compensating fees may apply depending on the investment option. A low annual custodial fee applies.

Transfers and Rollover IRAs

A Transfer IRA is the movement of your IRA funds from custodian to custodian or trustee to trustee making the transaction easier for tax purposes. No 1099s required.

A Rollover IRA is distributed from another IRA, qualified plan, or 457(b) or deferred compensation account and deposited into an IRA or qualified plan within a 60 day period allowing the funds to keep their tax-advantage status.

Simplified Employee Pension (SEP)

Established by a business, contributions are deposited into employees’ Traditional IRAs and are tax deductible by the employer.

Defined Contribution Plans

This qualified plan is a tax-deferral vehicle for retirement purposes. The participant’s benefits are based on the level of employer and employee contributions. There are restrictions on distributions without penalty.

Defined Benefit Plans

This plan serves as a retirement savings vehicle sponsored by the employer. Benefits are based on a formula indicating the exact benefit. Investment risk and portfolio management are entirely under the control of the company. There are restrictions on distributions without penalty.

Call Susie Roberts, Vice President & Trust Officer, at (913)288.3281 to discuss how the Trust Services division of Brotherhood Bank & Trust can help you.

 

Individual Retirement Accounts include investments that are not insured by the FDIC. Not deposits or other obligations of Brotherhood Bank & Trust. Not guaranteed by Brotherhood Bank & Trust. Subject to investment risks, including possible loss of the principal invested.