Retirement & Education Accounts

Personal Banking Services

Retirement & Education Accounts

1st Bank Yuma offers a variety of retirement accounts to fit your needs. Whether you are an individual looking to save for your retirement, an employer wanting to set aside money in retirement accounts for you and your employees, or you are looking to save for a child or children educational expenses.

Summary

  • Competitive Rates
  • Flexible Terms
  • Expert Advise

Individual Retirement Accounts

An Individual Retirement Account (IRA) offers the combined benefits of tax savings and solid income for your retirement. Whether you choose a Traditional or Roth IRA, 1st Bank Yuma can help you choose the appropriate plan.

Traditional IRA

  • Defer taxes on earnings until they are withdrawn
  • Certain contributions are tax-deductible in the tax year for which they are made
  • Eligibility: you must be under 70 1/2 years of age for the entire tax year and you or your spouse must have earned income
  • See your tax or legal professional for more information

Roth IRA

  • A nondeductible retirement account featuring tax-free withdrawals, for you or your heirs, for certain distribution reasons after a five-year holding period
  • Beneficial if you expect to be in a higher tax bracket when you retire, as contributions are nondeductible
  • You or your spouse must have earned income, and modified adjusted gross income cannot exceed certain limits
  • See your tax or legal professional for more information

Simplified Employee Pension (SEP)

Simplified Employee Pension (SEP) plans can provide a significant source of income at retirement by allowing employers to set aside money in retirement accounts for themselves and their employees.

  • Available for any business size, whether you're a business owner or self-employed
  • Eligibility: anyone whose employer invites them to participate in a SEP (please note that employees cannot make personal contributions to a SEP IRA)
  • Contributions on behalf of yourself and your employees are tax deductible
  • Easy to set up and operate with low administrative costs
  • Flexible annual contributions - good plan if cash flow is an issue
  • See your tax or legal professional for more information

Coverdell Education Savings Account (CESA)

A Coverdell Education Savings Account (CESA) is an account created as an incentive to help parents and students save for education expenses. Whether you're saving for your child's, grandchild's or other eligible young person's education, a CESA is an investment in future generations.

  • A nondeductible account featuring tax free distributions with qualified education expenses
  • Deposited amounts grow tax free and tax is deferred on earnings
  • Eligibility: child must be 18 years or younger
  • See your tax or legal professional for more information

Types of Accounts Offered for these Products

Savings Plan

  • • Open account with minimum deposit of $100
  • • Add to your account weekly, monthly or anytime you choose
  • • Choose any amount allowable by law to invest during the year
  • • Accumulate $1,000 to qualify for the Certificate of Deposit

Certificate of Deposit Plan

  • Open account with minimum deposit of $1,000
  • Interest rates vary depending upon the term
Rates Contact Us