 |
 |
 |
 |
|
|
|
| TRUST SERVICES / IRA PRODUCTS
Trust Services
Agency Accounts | Estates | Guardianships | Life Insurance | Living Trusts IRA Products Coverdell Education Savings Account (CESA) | Roth IRA | Self-Directed IRA | SEP IRA | Traditional IRA Agency Accounts Fowler State Bank can act as your agent for your investment account or bill paying account.
(765) 884-1200 or (800) 439-3951 Estates As personal representative of your estate the Fowler State Bank Trust Department will carry out the provisions of your will. In serving you, we will:
 For more information, please contact a Fowler State Bank Trust
Officer (765) 884-1200 or (800) 439-3951 Guardianships All too frequently in life, minor children find themselves in need of a guardian. Adults who are seriously ill or who have become increasingly incapacitated need that same source of help. In serving as a guardian, Fowler State Bank will locate and protect assets, invest assets, determine the ward’s needs, pay bills, file insurance claims, file federal and state tax returns, and report to the Court. For more information, please contact a Fowler State Bank Trust Officer (765) 884-1200 or (800) 439-3951 Life Insurance Trust Fowler State Bank will pay insurance premiums and send out notices to beneficiaries of an insurance trust. We will oversee the management and distribution of your life insurance proceeds while your beneficiaries enjoy the results of your estate planning. For more information, please contact a Fowler State Bank Trust Officer (765) 884-1200 or (800) 439-3951 Living Trusts Trusts have important advantages in serving you during your lifetime and as a means of handling your estate and providing for those you care for after death. This trust can be established as an independent tax-paying entity, which provides tax benefits and continuous asset management. Fowler State Bank will provide you with the following:
(765) 884-1200 or (800) 439-3951 COVERDELL EDUCATION SAVINGS ACCOUNT (CESA).  The
Coverdell Education Savings Account is a nondeductible account
that features tax-free withdrawals for a very specific purpose –
a child’s education expenses (elementary, secondary and higher
education).This is a self-directed product and has the flexibility of investment choices. Contributions: You can contribute to a Coverdell Education Savings Account even if you don’t have earned income. Contributions are made with after-tax dollars, and you cannot take a deduction for the contribution. Contributors may be non-individuals like corporations or tax-exempt organizations. These entities have no income restrictions for qualification. There can be more than one contributor, provided the total contribution does not exceed the annual allowable maximum. The law allows a contributor to deposit the maximum allowable contribution into separate CESA’s for as many children as desired. Earnings grow tax-free. Withdrawals: Withdrawals used for qualified education expenses – tuition, books, and room and board for private kindergarten through high school – are free from federal income tax. Withdrawals for higher education expenses – tuition, fees, books, supplies and equipment required for enrollment in an area vocational school, college or university – are also tax-free. Withdrawals must be made during the year the education expenses occurred. If any balance remains in the account after all education expenses are paid for, the account can be rolled over to another Coverdell Education Savings Account for another eligible family member. Penalties: If the beneficiary reaches age 30 and the balance has not been rolled over, the account balance must be distributed as ordinary income, with income taxes and a 10% penalty on earnings due. Withdrawals for non-education expenses may be subject to federal income tax and a 10% IRS penalty on earnings. For more information, please contact the Fowler State Bank Customer Service Department at 765-884-1200 or 800-439-3951. Consult your tax advisor regarding eligibility, contributions, and distributions. ROTH IRA  A
Roth IRA is an individual retirement account that allows only
nondeductible contributions but features tax-free withdrawals
for certain distribution reasons after a five-year holding
period. The term “tax free” means free from federal income
taxes.This is a Self-Directed product and has the same flexibility of investment choices as our Self-Directed IRA. Two requirements must be met for eligibility to contribute to a Roth IRA- you must have compensation (or your spouse must have compensation) and your modified adjusted gross income (MAGI) cannot exceed certain limits. There is no maximum age for making a Roth IRA contribution, however, contributions must still be based on earned income. The earnings on your Roth IRA are nontaxable provided you take the earnings as part of a qualified distribution. In order for earnings to be tax free you must meet a five-year holding period for your Roth IRA. This period begins with the tax year for which your first contribution is made. After that, any earnings you withdraw for a qualified distribution reason are income tax free and penalty free. Contributions are not subject to taxation or the 10% premature-distribution penalty tax when distributed. In other words, you can always withdraw your principal income tax free and penalty free for any reason. Assets held in a Roth IRA are not subject to age 70 ½ required minimum distributions. For more information, please contact the Fowler State Bank Customer Service Department at 765-884-1200 or 800-439-3951. Consult your tax advisor regarding eligibility, contributions, and distributions. Withdrawals may be subject to early withdrawal penalty. SELF-DIRECTED IRA  Do
you want more choices for your IRA? If you answered “Yes”, we
can help.Fowler State Bank offers you the opportunity to make your IRA Self-Directed. With a Self-Directed IRA you have more choices in the type of account in which you invest your funds. The Self-Directed IRA is still subject to the IRS guidelines for eligibility, contribution amount, deductibility and distributions. Withdrawals may be subject to early withdrawal penalties per investment account contract. Fees may reduce earnings. For more information, please contact the Fowler State Bank Customer Service Department at 765-884-1200 or 800-439-3951. Contact your tax advisor regarding eligibility, contributions, and distributions. SEP IRA – Simplified Employee Pension This is an IRA funded with employer contributions. The Employer can put up to 15% of your compensation into this IRA account. This type of account is opened more often with smaller employers due to having fewer administrative and tax filing requirements, which makes this plan less expensive to administer than 401k or Profit Sharing Plans. You can then invest the funds into two types of IRA accounts, Traditional or Self-Directed. For more information, please contact a Fowler State Bank Customer Service Representative (765) 884-1200 or (800) 439-3951. TRADITIONAL IRA Contributions to a Traditional IRA may be deductible from your current taxable income. Traditional IRA account funds may be invested in an 18-month variable rate certificate of deposit. You may withdraw money from your Traditional IRA at any time, and the taxable portion of that withdrawal will be taxed as ordinary income. Taxable amounts you withdraw prior to age 59 ½ may be subject to the IRS 10% early withdrawal penalty. The amount of contribution that is deductible on your income tax return depends on your AGI (Adjusted Gross Income) and whether you are covered under an employer sponsored qualified retirement plan. Depending on your filing status and your AGI, your contributions may range from fully deductible to totally non-deductible. Contributions may be made to a Traditional IRA until age 70 ½. You are required to begin taking distributions from your Traditional IRA beginning April 1 of the year following the year you reach age 70 ½. These withdrawals are Required Minimum Distributions (RMDs). For more information, please contact the Fowler State Bank Customer Service Department at 765-884-1200 or 800-439-3951. Consult your tax advisor regarding eligibility, contributions, and distributions. Withdrawals may be subject to early withdrawal penalty. |