Certificate of Deposit (CD) Individual Retirement Account (IRA) Traditional IRAs ROTH IRAs Education Savings Accounts IRA Transfers & Rollovers Distributions   Ulises Alonso , CFO of Floridian Community Bank has his finger on the pulse of the current economic enviroment.

Certificate of Deposit (CD)

• Competitive, guaranteed rates for term of deposit
• $1,000 minimum deposit to open account and earn disclosed annual percentage yield
• Annual percentage yield assumes interest will remain on deposit until maturity
• Interest begins to accrue on the business day the deposit is made
• A withdrawal of interest will reduce earnings
• Automatically renewable for your convenience with 10 day grace period
• Available in terms from 6 months to 5 years
• Interest can compound back into CD or by direct deposit to your Community Bank of the South checking or savings account
• FDIC insured up to $100,000
• A penalty may be imposed for early withdrawal

Individual Retirement Account (IRA)

• Competitive, guaranteed rates for term of deposit
• $1,000 minimum deposit to open account and earn disclosed annual percentage yield
• Annual percentage yield assumes interest will remain on deposit until maturity
• Interest begins to accrue on the business day the deposit is made
• A withdrawal of interest will reduce earnings
• Automatically renewable for your convenience with 10 day grace period
• Available in terms from 6 months to 5 years
• Interest will compound back into IRA
• FDIC insured up to $100,000
• A penalty may be imposed for early withdrawal

Traditional IRAs

The traditional IRA first became available in 1975 to encourage people to save for their retirement and to provide for beneficiaries upon death. Higher contribution limits and greater flexibility were added with the implementation of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001. If deferring taxes on part of your income is your tax strategy, a Traditional IRA may be right for you. You should speak with your tax advisor, accountant or attorney before proceeding with this type of transaction.

ROTH IRAs

The Roth IRA was first made available on January 1, 1998. Contributions are made with after-tax dollars and earnings are free from taxes and IRA penalties if certain conditions are met. If your income level is too high for a Traditional IRA, a Roth IRA may be just the thing for you. You should speak with your tax advisor, accountant or attorney before proceeding with this type of transaction.

Education Savings Accounts

In July 2001, President Bush signed legislation that formally renamed the Education IRA the Coverdell Education Savings Account (CESA). This is named after the late Senator Paul Coverdell, who championed the creation of the Education IRA.

The CESA is a tax-favored savings tool created to assist in saving for an individual’s education expenses. Distributions for qualified education expenses are not subject to federal income tax or a 10 percent penalty tax.

IRA Transfers and Rollovers

It’s easy to move your IRA to Community Bank of the South. Whether a Roth or Traditional IRA, you can move existing IRA money as follows:

• Transfers -- you can come into our office, establish an IRA account with us, and complete a transfer form. This form is then sent to the institution that currently holds your funds. After receipt, the funds are sent directly to us for deposit into your account. The IRS places no limits on transfers and no part of this transaction is reported to the IRS.
• Rollovers -- To complete a rollover, you take the funds from one institution and deposit into another institution. A rollover may be done once per year and the deposit must be completed within 60 days of distribution from the first institution. A rollover is also used when moving funds from a qualified pension plan to a Traditional IRA.

Distributions

When you withdraw money from a retirement account, it is called a distribution. Distributions from a Traditional IRA are reported to the IRS as income and as such, may be subject to income tax. There may also be IRS imposed penalties except under special circumstances such as death, first time home purchase, disability, education and reaching age 59 ½.
Distributions from a Roth IRA have more complex tax implications. You should speak with your tax advisor, accountant or attorney before proceeding with this type of transaction.

Required Minimum Distributions (RMD)
The IRS requires that, beginning in the year you become 70 ½ years of age, you begin taking a “Required Minimum Distribution” from your Traditional IRA each year. This amount will vary based upon governmental tables. Our representatives will be happy to assist in calculating your RMD if requested. You should speak with your tax advisor, accountant or attorney before proceeding with this type of transaction.