Enriching Your Golden Years
An Individual Retirement Account (IRA) is the blanket term for a form of retirement planning that provides tax advantages for retirement savings in the United States.
Many people mistakenly believe that IRAs are available only through an employer or a financial service that specializes in IRA plans. This is not true! American Bank offers IRA plans that can be opened with as little as $100.00. The funds can then be moved to higher-earning IRA options as the balance grows.
In these uncertain economic times, it's comforting to know your hometown community bank can be your partner in setting aside some funds for retirement!
Open an Individual Retirement Account (IRA)
Call or visit one of our personal banker specialists today!
History of the IRA
Individual retirement accounts were introduced in 1974 with the enactment of the Employee Retirement Income Security Act. Taxpayers could contribute up to $1,500.00 per year and reduce their taxable income by the amount of their contributions. In 1981, the Economic Recovery Act expanded availability of IRAs, and the maximum allowable contribution was raised to $2,000.00.
Maximum allowable contributions have continued to rise and now stand at $5,500.00 per year for individuals under 50 years of age and $6,500.00 per year for those 50 and older.
Individual Retirement Account (IRA) funds cannot be distributed before the age of 59½ without a penalty, unless special circumstances are present.