CDs/IRAs/HSAs

Certificates of Deposit (CDs)

American State Bank offers certificates of deposit with attractive interest rates for the following terms: 3 months, 6 months, 12 months, 18 months, 24 months, 36 months, 4 years, and 5 years. .

"Penalty Free" certificates are offered with an attractive interest rate, and the flexibility to add to the certificate or withdraw all or part of the deposit seven days after the purchase date.

For current rates, please stop in or give your local branch a call.

Individual Retirement Accounts (IRAs)

Traditional IRAs

The annual contribution limit is $5,000. This contribution limit can be adjusted annually for inflation in $500 increments. The limit can be split between a traditional IRA and a Roth IRA but the combined limit is $5,000. Contributions are fully tax deductible if you are not an active participant in an employer retirement plan. Deductibility may be limited to the accompanying chart for details Investments grow on a tax-deferred basis. Distributions must begin at age 70 ½. Earnings are taxed only upon withdrawal. See your tax accountant for more information.

Roth IRAs

As long as you have earned income, you can establish and contribute to Roth IRA even after age 70 ½. While contributions are not tax deductible, contributions and earnings can be withdrawn tax-free and unlike traditional IRAs, you are not required to begin taking required minimum distributions after reaching age 70 ½ . By converting your traditional IRA to a Roth IRA, you can enjoy tax-free withdrawals. However, the amount you convert is subject to income tax now.

Health Savings Accounts (HSAs)

Health Savings Accounts (HSAs) are tax-favored savings accounts for individuals and families covered by high deductible health insurance plans. They allow for tax-deductible contributions and tax-free withdrawals for qualified medical expenses. At American State Bank, customers with an HSA can receive a debit card to conveniently pay qualified medical expenses.

HSAs can be a valuable asset to both eligible individuals and employers. To discuss HSA benefits and eligibility, stop by American State Bank.

Traditional and Roth IRAs At-a-Glance

	Traditional IRA	Roth IRA
Qualifications	Must have earned income and not have reached age 70 1/2 by the end of the year.	Must have earned income. There are no age restrictions.
Maximum Contributions	Taxable years beginning 2008 and after . . . . . . . . . . $5,000*	Taxable years beginning 2008 and after . . . . . . . . . . $5,000*
Catch-Up (50+Over)	2008 and after . . . . . . . . . . $1,000*	2008 and after . . . . . . . . . . $1,000*
Tax Status of Earning	Tax deferred until withdrawal.	Earnings grow tax-free.
Contribution Restrictions (Based on Adjusted Gross Income)	Yes, if active participant in employer retirement plan: 2009 Contributions Phaseouts Single and Head of Household . . . AGI: $55,000 - $65,000 Married Joint . . . . . . . . . . . . . . . . . . AGI: $89,000 - $109,000 If your spouse is covered by a retirement plan at work, but you are not, the phaseout is AGI: $166,000 -$176,000	For the 2009 tax year $105,000 - $120,000 for singles and $166,00 - $176,000 for married couples filing jointly.
Tax Deduction	Yes. Contributions up to the limit are fully tax deductible if you are not an active participant in a retirement plan. Otherwise phaseout rules apply.	* Combo Statement or Quarterly Statement
Penalties for Early Withdrawal	None if: * Over 59 1/2 * Death or disability * Qualified medical expenses * Certain health insurance * Qualified college expenses * 1st time home purchase (up to $10,000) * Due to IRS levy * Periodic payments
Required Distributions	Must begin by April following year participant turns 70 1/2.	Only after death of participant.
Contributions After Age 70 1/2	Not allowed.	Allowed.