An Educational Savings Account is an investment tool created for the purpose of paying for a child’s education. The plan allows total after-tax contributions of $2,000 per year for each child until they reach the age of 18. These contributions and their subsequent earnings are tax-free when withdrawn to pay for qualified education expenses.
For more information on the IRA products, stop at your local branch location or call one of our Universal Bankers.
Often, contributions are 100% deductible. Earnings grow tax deferred. Distributions are generally taxable, but penalty free if withdrawn under one of the following circumstances:
Distributions are required to be taken by Traditional IRA holders beginning at age 72.
See us for FDIC limits.
Contributions are never deductible. Earnings can grow tax-free. Contributions can generally be distributed tax-free at any time. Earnings can be distributed tax free if the Roth IRA contributions were made at least five years ago AND one of the following event occurs:
Distributions are not required to be taken by Roth IRA holders at age 72. Distributions for Roth IRAs are not required until after the death of the owner.
First National Bank Minnesota offers Certificates of Deposits and IRAs, please check with a Universal Banker for interest rates that are applied to each account. Rates are subject to change at any time without notice.