First Minnetonka City Bank

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Planning for Retirement | Start Saving with an IRA

Individual retirement accounts (IRAs) may provide a tax-advantaged way for you to save for retirement, check out the IRA options available through First Minnetonka City Bank.

Traditional and Roth IRAs

Explore the difference between a Traditional IRA and a Roth IRA and decide which one is right for you.

Explore Traditional and Roth IRAs >>

Traditional IRA

A traditional Individual Retirement Account allows you to save for your retirement and to defer taxes on the earnings of your contributions until they are withdrawn.  Certain contributions may be partially or fully tax deductible in the tax year for which they are made, but distributions are generally taxable.*

Learn more about Traditional IRAs >>

Roth IRA

The Roth Individual Retirement Account allows you to save for your retirement using only nondeductible contributions and features federal income tax free withdrawals for certain distribution reasons after a five-year holding period.  Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a traditional IRA.*

Learn more about Roth IRAs >>

* Eligibility rules apply.

Simplified Employee Pension (SEP)

The SEP is a retirement plan established and funded by an employer to provide retirement benefits for the employer and employees.  It is a plan that is simple to establish and operate. Any employer, whether a corporation, partnership or self-employed individual may establish a SEP, even if there are no other employees.

Each year, the employer may contribute a certain percentage of each employee’s eligible compensation directly to the employee’s IRA.  The dollars contributed can qualify as a tax deduction within the limits listed below:

Tax Year SEP Plan Employer Contributions
2020 The lesser of 25% of the first $285,000 of each eligible employee's compensation or $57,000
2021 The lesser of 25% of the first $290,000 of each eligible employee's compensation or $58,000
2022 The lesser of 25% of the first $305,000 of each eligible employee's compensation or $61,000
Contribution Deadline Employer's income tax return filing due date, plus extensions

As a business owner, you should consult with your tax or legal professional to review the IRS eligibility requirements for this plan.

The IRS publication 560, Retirement Plans for Small Business, found on the IRS web site can provide detailed information about SEPs.

The sooner you begin saving for retirement, the more time your money has the potential to grow.  It pays to start saving now and to contribute regularly.

Check our great rates for current rates and additional terms and conditions. Interest rates are subject to change.

Resources

Transfers, Rollovers, and Conversions

Move your retirement savings without losing tax benefits.

IRA and Retirement Plan Distributions

Is it time to cash in on your retirement savings?

Inherited IRAs

Understand your beneficiary distribution options.

Learn more about Transfers, Rollovers, and Conversions >> Learn more about IRA and Retirement Plan Distributions >> Learn more about Inherited IRAs >>

 

Learn More | Contact Our Personal Banking Specialists

Glen Lake: (952) 935-8663

14550 Excelsior Blvd.
Minnetonka, MN 55345
Hours & Directions

Country Village: (952) 935-5995

11500 Highway 7
Minnetonka, MN 55305
Hours & Directions

 

Report unauthorized activity

To report unauthorized activity or a lost or stolen Visa Debit Card, call (952) 935-5995 or (952) 935-8663 during our business hours. After hours, call (800) 472-3272.

Consumer Education

Education

These tips are available so you can learn more about ways to save money, send your children to college, save for retirement, and more.

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Security Tips

Our security tips provide valuable resources to protect your personal identity, your banking account and more.

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The Fair Housing Act prohibits discrimination in housing because of:
Mission

Enforce the Fair Housing Act and other civil rights laws to ensure the right of equal housing opportunity and free and fair housing choice without discrimination based on race, color, religion, sex, national origin, disability or family composition.

Major Goals

1. Reduce discrimination in housing by doubling the Title VIII case load by the end of 2000 through aggressive enforcement of civil rights and fair housing laws;

2. Promote geographic mobility for low-income and minority households;

3. Integrate fair housing plans into HUD's Consolidated Plans;

4. Further fair housing in other relevant programs of the Federal government; and

5. Promote substantial equivalency among state, local and community organizations involved in providing housing.