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IRA

An IRA (Individual Retirement Account) is a self-directed investment account established by individuals to provide supplemental income at retirement. The Bank of Kentucky offers all types of IRA's including: Traditional, Roth, SEP, Simple and CESA.

Traditional IRA's offers immediate tax benefits. All earnings grow tax-deferred until withdrawn and contributions may be tax-deductible. The maximum annual contribution for tax year 2013 is $5,500.  A catch up contribution of $1,000 may be made by individuals 50 years or older.

Roth IRA's are non-deductible accounts that feature tax-free withdrawals for certain distribution reasons after a five-year holding period. The maximum contribution to a Roth for those under age 50 is $5,000 for tax year 2009.

SEP IRA'S (Simplified Employee Pension Plan) are retirement plans designed for self-employed individuals and small-business owners. When establishing a SEP-IRA plan for your business, you and any eligible employees establish separate SEP-IRA's; employer contributions are made into individual employee's SEP-IRA accounts.

SIMPLE IRA'S are also designed for small businesses looking to offer a tax-advantaged, company-sponsored retirement plan. The SIMPLE plan is a flexible, easy to administer retirement plan for businesses with 100 or fewer employees. SIMPLE plans are funded by employer contributions or by elective employee salary deferrals.

CESA (EDUCATION) IRA'S
The Coverdell Education Savings Account is a nondeductible account that features tax-fee withdrawals for your child's education expense. These accounts were formerly known as education individual retirement accounts

Self-directed IRA's
A self-directed IRA enables you to buy and sell individual stocks as opposed to investing into mutual funds. It allows you to make all the investment decisions.

To learn more about IRA's from The Bank of Kentucky call or visit any of our conveniently located banking centers and let our customer service representatives help select the best account for you.

Visit the IRS online at: http://www.irs.gov/retirement/article/0,,id=137320,00.html

             For your benefit, please consult your tax or legal professional for a complete overview on IRA's.