Mifflinburg Bank & Trust recognizes the importance of contributing to an Individual Retirement Account early in your professional career. ROTH, Traditional and Educational IRAs can be established as a Certificate of Deposit or a Savings Account. You may contribute the full amount even though you are contributing the maximum amount to a 401k plan. The maximum contribution amount is $5000.00 per individual and $6000.00 for individuals over age 50 subject to IRS income limit regulations. Which IRA is right for you? By choosing to open both a traditional IRA and ROTH IRA you will develop your own blend of tax-deductible contributions. For complete account details, call a Customer Service Representative at any of our office locations.

Traditional IRA – For individuals looking to defer taxes on the earnings of contributions until they are withdrawn. Certain contributions are tax deductible when made in the same tax year for which you are making the contribution. You may begin taking distributions after the age of 59 ½. Individuals may benefit with a traditional IRA by saving tax dollars now if they anticipate a lower tax bracket at retirement.

ROTH IRA – Want some tax-free income when you retire? The ROTH IRA may be the right choice for you. Interest earned on contributions are tax free. Contributions are after tax contributions. No age limitations on contributions. There are no penalties on distributions if the individual has held his first ROTH IRA for 5 years and is age 59 ½. ROTH IRA distributions are not required at any age.

Educational IRA – (Coverdell education savings account) – You may contribute up to $2000.00 a year for your child's education. Contributions are not tax deductible; however, they and their earnings can be withdrawn tax-free as long as they are used to pay eligible schooling costs. Any adult-parents, grandparents, godparents or friends may contribute to a child’s education IRA, but the total contribution amount may not exceed $2000.00 annually.

For complete details Contact Us Now, call a Customer Service Representative at any of our office locations, or call toll free 1-800-888-MBTC (6282).