Individual Retirement Accounts (IRAs)
Customers who are interested in setting aside money for a financially secure retirement will definitely be attracted to First Northern's IRAs. Earn more with compound interest. You may select from three First Northern Bank IRA plans, including traditional and Roth IRAs.
- Can be opened by anyone with income and under the age of 70½
- Contributions are tax deductible*
- Interest earnings are tax deferred
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty**
- Mandatory withdrawals begin at age 70½
*Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, and others.
- Income must be less than $95,000 annually ($150,000 for married couples) to open
- Contributions are not tax deductible
- Earnings are 100% tax free upon withdrawal
- Direct contributions can be withdrawn free of penalty at any time*
- Interest withdrawals are penalty free beginning at age 59½
- Early interest withdrawals subject to penalty**
- No mandatory withdrawals at age 70½
*Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing first home, and others.
- Interest grows tax free
- Withdrawals are tax free when used for qualified education expenses*
- Contributions are not tax deductible
- No income restrictions or limits to open
- Beneficiary must be under 18 at time of opening
- Beneficiary does not have to be a relative
- Mandatory distributions begin if balance remains when beneficiary reaches age 30
- Maximum annual contribution of $2,000
*Qualified expenses include tuition and fees, books, supplies, room and board, etc.
