The Harvard State Bank Trust Department offers a variety of IRA plans to help you build up your retirement nest egg.
We encourage you to discuss your retirement plans with your investment broker/tax advisor. After deciding which product is best for you, please contact our Trust Department for further information.
Traditional IRA
This form of IRA allows you to contribute a certain dollar amount each year of your earned income for retirement purposes. The benefit of investing in a traditional IRA include: tax-deferred earnings, and for many people, tax deductibility. This account also accepts rollover deposits from either another IRA or from a qualified plan distribution.
Roth IRA
A Roth IRA allows only non-deductible contributions, but features federal income tax-free withdrawals for certain distribution reasons after a five-year holding period. To be eligible you must have compensation and your modified adjusted gross income cannot exceed certain limits.
Self-Directed IRA
The funds deposited to your IRA will be invested by our Trust Department according to certain strategies that are determined by your tolerance for risk. Stocks, bonds, mutual funds, or bank instruments are available to make up your portfolio. If you choose, you can self-direct the investments in your account and our able staff will simple carry out your direction with no advice given.
Education Savings Account
Formerly known as education IRA’s this is a non-deductible account that features tax-free withdrawals for a very specific purpose – a child’s education expenses. Up to $2,000 per year may be contributed by any individual per child benefited.
Simple IRA Plans
The Small Business Job Protection Act of 1996 created the Savings Incentive Match Plan for Employees of Small Employers, or SIMPLE. This plan allows sole proprietors or employers with 100 or less employees to establish a salary deferral plan that requires limited employer contributions. In addition there is no discrimination testing nor reporting as required with other deferral plans.
For all IRA accounts different restrictions apply so be sure to discuss these plans in detail with our Trust Department.
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