Traditional & SEP IRAs

Traditional IRA

Contributions to a Traditional IRA are based upon compensation and age.

• To make a regular Traditional IRA contribution for any tax year, an individual must be younger than 72
• Your contributions may range from fully deductible to totally non-deductible, based on your filing status and Adjusted Gross Income (AGI)
• Withdrawals prior to age 59½ may be taxable and subject to the IRS 10% early withdrawal penalty
• Minimum opening deposit of $100

SEP IRA

A SEP IRA is funded with employer contributions.

• Your employer can put in a certain percentage of your compensation
• A good plan for employers with a low number of employees
• Less expensive to administer than 401K or Profit Sharing plans
• Employee contributions can also be made to the account
• Minimum opening deposit of $100

For more information, please contact the Fowler State Bank IRA Department at 765-884-1200 or 800-439-3951.