• Certificates of Deposit
• Individual Retirement Accounts (IRAs)
• CDARS
• FDIC "EDIE" Calculator

Certificates of Deposit

When seeing the bigger financial picture, it’s important to set aside funds for the long term. Peach State Bank & Trust offers a full array of Certificates of Deposit ranging in terms from seven days to five years. A CD is an excellent way to maximize your interest earnings while enjoying the safety and stability they offer. Please be advised, however, that we may impose an interest penalty for early withdrawal of a Certificate of Deposit.

Individual Retirement Accounts (IRAs)

An IRA from Peach State Bank & Trust can be the perfect supplement to other pension plans or social security income you anticipate in retirement. We offer both Traditional and Roth IRAs, each featuring different eligibility requirements and tax treatment of your contributions. For example, eligible savers may enjoy tax benefits during their income-producing years with a Traditional IRA, which is taxed at the then-current tax rate upon withdrawal. A Roth IRA, however, is funded with after-tax dollars but grows and is distributed tax-free for qualified savers.

Take a moment today to discuss your eligibility with your tax advisor and then to us to open the appropriate IRA for your specific retirement goals.

RECENT CHANGES GOVERNING IRAs

Over the past few years there were several important changes to the rules that govern qualified retirement plans. The two most significant pieces of legislation involve the required minimum distributions (RMDs) from IRAs and Qualified Retirement Plans (QPs) and the conversions of assets from Qualified Retirement Plans and Traditional IRAs to the Roth IRA, which offers tax free withdrawals at retirement age.

In December, the Workers, Retirees, and Employers Recovery Act of 2008 was signed into law. The most significant aspect of this legislation was the suspension of all required minimum distributions from both types of IRAs and other QPs for 2009. (Note: If you turned 70½ in 2008, you still have to take your RMD for that year.) Any beneficiaries of those who died in 2008 also will get to postpone distributions for 2009 if single life expectancy is chosen or can extend a five year payout to six years. The postponing of RMDs was designed to make your retirement money last longer, and that is essential given the recent turmoil in the financial markets.

Recent legislation has also made it attractive to convert your traditional IRA or QP, where taxes are deferred, to a Roth IRA, which is funded with after-tax dollars but enjoys tax free withdrawals. (Note: Conversion of a Traditional IRA or QP to a Roth is a taxable event; please see your tax advisor for the conversion's taxability.) In 2009, if your Modified Adjusted Gross Income (MAGI) is less than $100,000, you can convert your traditional IRA to a Roth IRA. For the year of 2010 only, this income limit is eliminated for the entire year of 2010. Moreover, anyone who makes a "Conversion" in 2010 can split their tax liability equally over the years 2011 and 2012.

If your retirement assets have decreased due to the recent turmoil in the financial markets, the next two years may be a good time to convert to a Roth IRA. First, your lower asset base will produce a lower nominal tax amount. Secondly, if you make the conversion in 2010, you can spread out the tax liability.

Peach State Bank & Trust offers various types of fixed rate retirement vehicles. Please contact one of our Customer Service Representatives to take advantage of the changing rules that govern IRAs.

This article and its contents are not intended to provide legal advice or to be a detailed explanation of the rules or how such rules may apply to your individual circumstances; FOR SPECIFIC INFORMATION, YOUR ARE ENCOURAGED TO CONSULT YOUR TAX OR LEGAL PROFESSIONAL.

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