Nicollet County Bank offers a variety of individual retirement and investment accounts to help you plan for your future.
A Traditional IRA with Nicollet County Bank is a special tax-deferred savings account authorized by Internal Revenue Code section 408. It is a unique and simple way to encourage people to save money for retirement.
If your contribution is tax deductible, then you receive two tax benefits:
- An immediate tax savings, because you will pay fewer taxes because of the deduction
- The earnings generated by the IRA funds are not taxed until distributed.
If your contribution is not tax deductible, you still receive the tax benefit of tax deferral on the IRA’s earnings. You may also qualify for a tax credit.
Learn More about Traditional IRAs and read up on some frequently asked questions.
A Roth IRA with Nicollet County Bank is a type of tax-preferred savings and investment account authorized by Internal Revenue Code section 408A. The Roth IRA allows you to accumulate assets for retirement purposes and for other purposes.
A Roth IRA will produce tax-free income if certain rules are met. You or your beneficiary(ies) will not be required to include in income, for income tax purposes, a distribution paid from a Roth IRA, whether it be the return of a contribution or the account’s earnings, if certain rules are met. In some cases, you may be eligible to claim a tax credit because of your Roth IRA contribution.
Learn More about Roth IRAs and read up on some frequently asked questions.
A Coverdell Education Savings Account with Nicollet County Bank is a type of tax-preferred savings and investment account authorized by Internal Revenue Code Section 530 to encourage taxpayers to save for future education expenses. Coverdell Education Savings Accounts first became available as of January 1, 1998, for the 1998 calendar year, as a result of the Taxpayer Relief Act of 1997. The annual contribution limit for contributions during the period of 1998-2001 was $500 per designated beneficiary. Since 2002 the contribution limit has been $2,000 per designated beneficiary.
Grandparents and parents typically establish Coverdell Education Savings Accounts. However, there is no legal requirement that a person must be a relative of the person for whom they wish to contribute funds to a Coverdell Education Savings Account. The new tax law authorizes entities other than individuals to make contributions to a child’s Coverdell Education Savings Account. For example, a nonprofit entity such as a church or foundation could make a contribution to a Coverdell Education Savings Account for a child.
Learn More about Coverdell Education Savings Accounts and read up on some frequently asked questions.
An HSA is a tax-exempt trust or custodial account established for the purpose of paying medical expenses in conjunction with a high-deductible health care plan. The purpose of the federal law is to create tax incentives so one saves for future health and retirement needs. The HSA will primarily be used to accumulate funds to pay health expenses on a tax-preferred basis. However, the HSA can also be used to accumulate wealth on a tax-preferred basis. This will happen when the contributed funds and the earnings are not spent on health expenses. Learn More