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The primary advantage of an Independence IRA CD is the potential tax savings. Your Independence IRA CD is FDIC insured up to $250,000. You will receive high rates on your investment and there are no administrative fees. In addition, as with all Independence Bank deposit products, you have 24 hours a day, 7 days a week access to your accounts. You can invest in your Independence IRA CD by sending in an opening deposit for your annual or previous year contribution or rolling over funds from an existing IRA or qualified plan.
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 FDIC insured up to $250,000
Terms available from 7 days to 5 years
Interest rates are guaranteed for the term
No monthly service charge
FREE Internet Banking
FREE Telephone Banking
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$1000
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Min. Daily Balance
(to avoid service fee):
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$1000
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Current Rate
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None
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Traditional IRAs:
This account allows annual contributions by individuals, to provide a source of funds for retirement. In most cases, funds deposited are tax deferred until withdrawn.
For most individuals who qualify, amounts deposited to an IRA are deductible from their gross income.
Interest earned on all IRA deposits, both deductible and non-deductible is not declared as income for the year and taxes are not paid on the interest until the funds are withdrawn. When interest is withdrawn from an IRA, it is taxed as income, not interest.
You should consult your tax advisor regarding your specific retirement plan.
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Roth IRAs:
The 2007 contribution limit is $4,000 with a Catch-up contribution
 of $1,000 for IRA owners over the age of 50.
The 2008 and thereafter contribution limit is $5,000 with a
Catch-up contribution of $1,000 for IRA owners over the age of 50.
The earnings in your Roth IRA are tax-free.
Receive tax-free distributions after age 59½.
Unlike traditional IRAs, there is no requirement that you have to
take distributions from your Roth IRA at any age.
You can contribute to your Roth IRA after age 70½ as long as
your earned income exceeds your Roth IRA contribution.
You can also take advantage of the superior rates you will receive
and rollover funds from your existing Traditional IRA or Roth IRA
Certain rules apply when converting funds from an existing IRA).
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Roth IRA and Traditional IRA:
If you contribute to both Roth IRAs and Traditional IRAs established for your benefit, your contribution limit for Roth IRAs is the lesser of:
The maximum contribution limit reduced by all contributions for
the year to all IRAs other than Roth IRAs, or,
The maximum contribution limit reduced because your modified
AGI is above a certain amount.
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Eligibility:
Participant:
1. Must not have reached age 70½ during the taxable year.
2. Must have received taxable income (compensation).
3. Must be living.
4. Contributions are limited to 100% of earned income with the
following contribution limits.
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Tax Year
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Max. IRA Contribution
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2005-2007
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$4000
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2008 and beyond
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$5000
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Spousal:
Available to a spouse who is unemployed or who has elected to be treated as non-compensated. The compensated spouse must make a regular contribution to a Traditional IRA and the non-compensated spouse must make a spousal contribution to a Traditional Spousal IRA.
Must be legally married and file a joint tax return.
The limits on spousal IRA contributions have increased.
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Tax Year
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Max. IRA Contribution
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2005-2007
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$4000
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2008 and beyond
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$5000
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Compensation (that is reportable on a W2):
Wages, salary, tips, professional fees, bonuses.
Self-employment income, commissions, alimony.
Tax Filing Deadline: April 15th, no extensions.
May accept deposits postmarked by April 15th.
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Terms and Conditions Disclosure
Funds Availability Policy
Schedule of Fees
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Copyright © 2008 Independence Bank
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