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CDs & IRAs

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Focus Your Savings Strategy

There are times when you need a more focused strategy for your savings. At American State Bank, you have options that allow you to save smarter. With our accounts, you can earn a better interest rate, save smarter for your retirement, and save so you’re prepared for an unexpected health expense. If you’d like to discuss which of our accounts would be right for you, please contact us to speak with a member of our personal banking team.

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Certificates of Deposit

Certificates of Deposit (commonly known as CDs) give you the chance to earn a better interest rate on the balance of your account. Here’s what you need to know about the CDs offered at ASB:  

  • Terms available from 3 months to 5 years.
  • Early withdrawals are subject to penalty
  • Separate, penalty-free CDs available that allow you to add to the certificate or make withdrawals without penalty.

Retirement Accounts

American State Bank offers two types of individual retirement arrangements – Traditional and Roth.  Eligibility requirements differ, but either arrangement offers flexibility, accessibility and tax benefits. Please consult your tax adviser to determine which one is right for you.

Traditional IRARoth IRA
QualificationsIndividual can make contributions at any age, but they must earn income or file a joint tax return with a spouse who earns income.Individual can make contributions at any age, but they must earn income or file a joint tax return with a spouse who earns income, and their modified gross income is less than or within the defined limits.
Tax DeductionsTraditional IRA contribution deductions depends on your marital and tax-filing status, and whether an individual or their spouse actively participate in an employer-sponsored retirement plan.Roth IRA contributions are not tax-deductible
Penalties for Early WithdrawalIf you are under age 59 ½, you will be subject to a 10% early distribution penalty tax on any taxable amount taken unless you qualify for a penalty exception
Required DistributionsTraditional IRA owners are required to take annual minimum distributions beginning with the year they turn age 72. Beneficiaries will also be subject to required distributions.Roth IRA owners are never required to take distributions. After the death of the IRA owner, the beneficiaries will be subject to required distributions.

Health Savings Account

No one is ever prepared for an unexpected hospital bill, which can cost you thousands of dollars before your health insurance kicks in. With a health savings account, you can bridge the gap before your deductible kicks in on qualified medical expenses. Here’s what you need to know about HSAs at American State Bank:

  • Must be enrolled in a high-deductible health plan
  • Cannot be enrolled in Medicare
  • Contributions are tax-deductible
  • Withdrawals are tax-free
  • Debit cards available to make transactions
  • Funds roll over from year to year

Please consult your tax advisor about any tax implications related to opening an HSA.