CDs and IRAs

CD's & IRA's

Saving made easy.

At Citizens State Bank, we offer a wide variety of certificate of deposits along with competitive rates to meet your financial needs. Contact our friendly and helpful New Accounts Department for our terms and rates.


Today, one of the greatest challenges facing American workers is assuring their financial security in retirement. Citizens State Bank offers Traditional and Roth IRAs to make it easy for you to save for retirement.



Traditional IRA

These questions and answers are intended to provide general information on federal tax laws governing Traditional IRAs. No part is intended to provide legal advice. For specific information, you are encouraged to consult your tax or legal professional.


What is a Traditional IRA?

Traditional IRA allows you to defer taxes on the earnings of your contributions until they are withdrawn. Also, depending on eligibility, contributions are tax deductible in the tax year for which you make them.


When am I eligible to make contributions?

You are eligible to make regular contributions if you are younger than age 70 1/2 for the entire tax year.


How much can I contribute each year?

You may contribute any amount up to 100 percent of your compensation unless your modified adjusted gross income (MAGI) exceeds a certain prescribed limit. Additionally, if you have attained age 50 or older by the end of your taxable year, you are eligible to make catch-up contributions. Refer to the IRS website for these limits or your tax professional.


Can I deduct my regular IRA contribution?

Active participation in employer-sponsored retirement plans and MAGI determine whether you can deduct your IRA contribution. For example, if you and your spouse are not active participants, you may deduct your contribution, no matter how high your income. If you or your spouse is an active participant, the deduction is dependent on your MAGI and income tax filing status. As your MAGI increases, your deduction decreases. Even if you cannot deduct your contribution, you can still make nondeductible contributions and take advantage of the tax-deferred earnings. Your tax professional can help you determine whether your contribution is deductible.


Do I pay taxes when distributed?

Yes, on the distribution of any tax-deductible contributions and on all earnings. Distributions that include these amounts are taxed as income in the year they are withdrawn.


Can I withdraw assets without penalty?

You can withdraw assets from your Traditional IRA without incurring the 10% early-distribution penalty tax any time after you reach age 59 ½. You can avoid the penalty tax before age 59 ½ for the following reasons: disability, substantially equal periodic payments, medical expenses in excess of 10% of your adjusted gross income, health insurance premiums if you have been receiving unemployment compensation for at least 12 weeks, distributions paid directly to the IRS due to an IRS levy, conversion to a Roth IRA, recharacterization, rollovers, qualified higher education expenses, a first-time home purchase, or a qualified reservist distribution. These exceptions may change from year to year. Refer to the IRS website for a complete list of exceptions or your tax professional.


When must my required minimum distributions begin?

The required beginning date for required minimum distributions is April 1 of the calendar year following the year in which you attain age 70 ½. Each subsequent year’s distribution must be made by December 31.
If you do not take a distribution in your age 70 ½, you must take distributions for two years in the year following the age 70 ½ year – the first year’s required minimum distribution by April 1 and the second year’s required minimum distribution by December 31.

Roth IRA

These questions and answers are intended to provide general information on federal tax laws governing Roth IRAs. No part is intended to provide legal advice. For specific information, you are encouraged to consult your tax or legal professional.


What is a Roth IRA?

Roth IRA gives retirement savers a different incentive, nontaxable distributions. Regular Roth IRA contributions are not tax deductible, so owners will not pay federal taxes on distributions of these contributions. Under certain conditions, the earnings on Roth IRA contributions are also nontaxable when distributed. Therefore, if you expect to be in a higher tax bracket when you take distributions in retirement, for this and other reasons you may benefit from a Roth IRA rather than a Traditional IRA.


Am I eligible to establish a Roth IRA?

You are eligible to establish a Roth IRA and make regular contributions if you or your spouse have compensation and your modified adjusted gross income (MAGI) for any tax year does not exceed certain prescribed limits. These limits are subject to annual cost-of-living adjustments (COLAs). Refer to the IRS website for these limits or your tax professional.


How much can I contribute each year?

You may contribute any amount up to 100 percent of your compensation unless your modified adjusted gross income (MAGI) exceeds a certain prescribed limit. Additionally, if you have attained age 50 or older by the end of your taxable year, you are eligible to make catch-up contributions. Refer to the IRS website for these limits or your tax professional.


Do I pay taxes when distributed?

Since regular Roth IRA contributions are nondeductible, distributions of these amounts are not taxable. Another nice Roth IRA feature is that the rules consider all contributions to be distributed before any earnings. This gives you easier tax free access to assets. Earnings, however, may be subject to tax unless they are removed as a qualified distribution. Qualified distributions are not taxable if five years have passed since you established your first Roth IRA and you are at least 59 ½, permanently disabled, taking first-time homebuyer distributions, or deceased. Nonqualified distributions are taxable for any reasons other than stated above.


Can I withdraw assets without penalty?

Roth IRA distributions of regular contribution amounts are always free of penalty tax- regardless of timing.


When must I withdraw assets?

You are not required to take distributions from your Roth IRA.

Citizens State Bank
New Accounts Department
Phone: (979)885-3571
Toll Free: (800)222-4252
Email: newaccounts@csbsealy.com