The Roth IRA has flexibility in the short-term and at retirement. It also allows tax-free earnings to those who are eligible.

Benefits:

• You do not have to pay taxes on earnings if they are withdrawn within the qualifying five-year period, starting with the tax year of the first contribution.
• You don't need to withdraw funds when you're 70 1/2. This gives you more flexibility in managing income and taxes.
• You can use funds without penalty for a first-time home purchase and higher education.

Eligibility:

• You and/or your spouse must have income equal to the amount of your contribution. You can contribute even if you contribute to an employer-sponsored plan.
• There are no age restrictions, but there are income limits.

Contributions:

• Contribution limits for individuals will increase through 2008. Those over 50 may contribute a higher "catch up" amount.
• There are limits to how much you may contribute. You are subject to Modified Adjusted Gross Income (MAGI) limits. These limits are as follows for a married, jointly filed tax return:
  • $150,000 or less - full contribution
  • $150,000-160,000 - partial contribution
  • $160,000 or more - No contribution
  • Contributions may be made after age 70 1/2

Withdrawals:

• There are no required withdrawal deadlines. You may withdraw contributions (but not earnings) at any time without penalty after the five-year period.
• Withdrawals are penalty-free at age 59 1/2 or older
• Prior to the five-year period, you may withdraw penalty-free for:
  • Beneficiary payment after taxpayer's death
  • For tax payer who is disabled
  • To acquire a principle residence for a first-time home purchase

Contact Park State Bank today for more information

Discover the benefits of new and improved IRAs for yourself.
We've given you just a taste of how our IRA products can help you save for your future. There are countless reasons to turn to an IRA for your investment needs. And, there are countless reasons to turn to us when making those investments.

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If you think brokerage firms and mutual fund companies are the only place to put your investments, you're overlooking a trusted alternative. When you invest with us, you're putting your money with people you trust in an environment where you know your money is sound and secure.

Contact Park State Bank today for more information