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Home > Deposit Accounts > IRA
Starting in 2010, anyone who has a Tradition IRA account can convert to a Roth IRA, regardless of income or tax-filing status. Choose fixed or variable rates—there’s no risk either way and the income earned accumulates tax free.
For further information call Virginia at 218-748-2609 Hoyt Lakes 218- 225-2121 or Biwabik 218-865-6143
2009 IRA Eligibility
Traditional IRA
The traditional IRA may be fully tax deductible depending on your income and filing status.
- Invest up to $5,000 a year with a catch up contribution of $1,000 after age 50.
- Accumulate income tax deferred.
- Withdraw funds IRS penalty free to help finance a higher education or your first home.
- Choose fixed or variable rate options.
Roth IRA
- Invest up to $5,000 a year with a catch up contribution of $1,000 after age 50(not tax deductible).
- Withdraw contributions tax-free any time. Withdraw interest earned IRS penalty-free after five years to buy a first home, or for any purpose after age 59½.
- Contributions from earned income can be made after age 70½.
- Unlike traditional IRAs, distributions are not required at age 70½.
- Transfer funds from existing IRAs to a new Conversion Roth IRA (subject to taxation).
Educational IRA
- Invest up to $2,000 a year for any child under 18 years (not tax deductible).
- Withdraw funds tax free and IRS penalty free to finance higher education expenses.
- Transfer any unused funds to another child in your family.
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