IRAs/HSAs
Individual Retirement Account (IRA)
It's never too late to start preparing for retirement! Let us help you save with a Traditional IRA or Roth IRA. An IRA is an excellent tool for retirement savings. Depending on the type of IRA you choose, contributions may be tax deductible and will grow either tax-deferred or tax-free. Both the Traditional and Roth IRAs consist of Marion County Bank CDs and are FDIC insured.
Traditional IRA
A Traditional IRA is designed for anyone under the age of 70 with earned income who wants to save for retirement. The Traditional IRA allows you to defer taxes on the earnings on your contribution until they are withdrawn. Certain contributions are tax deductible in the tax year for which you make them.
Roth IRA
A Roth IRA is for anyone who earns income and wants to save for retirement, especially those who may exceed the Traditional IRA income limits. The Roth IRA allows only nondeductible contributions and features tax-free withdrawals.
Consult your tax or legal professional for guidance.
Health Savings Account (HSA)
A Health Savings Account, more commonly known as an HSA, is an account established exclusively for the purpose of paying or reimbursing qualified medical expenses. To pay your medical bills with an HSA, simply write a check or use your free Marion County Bank debit card.
An HSA provides a way to pay for medical expenses tax-free. It also provides a way for individuals to pay for expenses that may not be paid for by a medical plan (i.e. dental, vision, over the counter medications) on a tax-free basis.
An HSA is owned and controlled entirely by an individual. All funds invested in an HSA remain the property of the account owner. The account balances roll over from year to year and accumulate tax deferred. Distrrbutions from your HSA for qualified medical expenses are tax-free. To be eligible for an HSA, an individual must:
- Be under the age of 65
- Be covered under a High Deductible Health Plan (HDHP)
- Not be covered by an other health plan that is not an HDHP (with certain exceptions for plans providing certain types of coverage)
- Not be enrolled in Medicare
- Not be claimed as a dependent on another person's tax return
Consult your tax or legal professional for guidance.