Personal Individual Retirement Account

A Horizon Community Bank Individual Retirement Account (IRA) is a personal savings plan that provides income tax advantages to individuals (and married couples) saving money for retirement purposes.

Horizon Community Bank offers both Traditional and ROTH IRAs.

Traditional IRA
You can contribute up to the maximum amount per year into an IRA. The amount of this contribution that is deductible on your income tax return depends on your Adjusted Gross Income (AGI) and whether you are covered under an employer sponsored qualified retirement plan. Thus, depending on your filing status (Single, Joint, etc), your age, and your adjusted gross income, your contributions may range from fully deductible to totally non-deductible. So even though you are eligible to contribute to your IRA, you may be in a position where none of these contributions are in fact deductible.

Contributions are NOT deductible when the funds are contributed, but the Roth IRA earnings accumulate tax-free and remain tax-free upon distribution. Eligibility is based on marital status and adjusted gross income. You cannot withdraw your funds within the first 5 years after the establishment of the Roth without a penalty. Given that this 5-year testing period can successfully be addressed by proper tax planning, the establishment and at least partial funding of a Roth IRA account should be on the discussion list of the financial advisor of every taxpayer who qualifies to open such a plan.

  • $1000 minimum deposit to open
  • Maturity terms available from 6 months to 5 years
  • Annual statements
  • Early withdrawal penalties may apply.