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CDs and IRAs

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Century Bank offers saving designed to grow your money over time. It’s easy to lock in an interest rate on your savings, so you can enjoy your return.

Certificate of Deposit

A Certificate of Deposit (also known as a CD, COD, or Time Account) is a financial product that usually pays a fixed interest rate for a set period of time (known as a "term"), ranging from a few months to several years. By depositing your money into a CD for a set term, you won't lose any of your initial deposit and will lock in your interest rate until your money matures.

FAQs

Can I withdraw funds from my CD before it matures?

Yes; however, there may be a penalty for withdrawing from your certificate account early. To learn more or to explore other options contact us today.

What are the benefits to a Century Bank CD?

CDs typically pay a higher interest rate than other deposit products. There is guaranteed return if the CD matures. The funds are FDIC insured up to the maximum applicable limits. CDs can offer flexible terms that fit your needs.

What happens when my CD matures?

Approximately one month before your CD matures, you'll be sent a notice reminding you of your maturity date. At maturity, you'll have a ten-calendar-day grace period to renew or make any of the following changes:
  • Change the term
  • Make additional deposits
  • Make withdrawals (as long as the remaining balance in the CD meets the minimum balance requirements)
  • Close the CD
At maturity, your CD will automatically renew at the interest rate then in effect unless you make one of the changes noted above. Interest will not be paid during the grace period if you withdraw your funds and do not renew your CD.

 

Stack of coins

Traditional IRA

A Traditional Individual Retirement Account (IRA) is an account that allows pre-tax contributions and features tax-deferred growth. In some cases, you may be able to deduct some or all of your contributions on your tax return.

FAQs

Am I eligible to have a Traditional IRA?

If you are younger than age 70½ for the entire tax year and receive compensation, you are eligible to establish and make annual tax-year contributions to a traditional IRA, even if you already participate in certain government plans, a tax-sheltered annuity, a simplified employee pension (SEP), a Savings Incentive Match Plan for Employees of Small Employers (SIMPLE), or a qualified pension or profit-sharing plan established by an employer.

How much can I contribute to my IRA?

You may contribute any amount up to 100% of your compensation or the current amount set forth by the IRS, whichever is less, to a Traditional IRA (or aggregated between a Traditional and a Roth IRA). Additionally, if you have attained age 50 or older by the end of your taxable year, you are eligible to make catch-up contributions.

When can I withdraw assets from my IRA without penalty?

You can withdraw assets from your IRA without a 10% early-distribution penalty tax any time after you reach age 59½.

What happens to my IRA in the event of my death?

Your named beneficiary(ies) will receive the entire proceeds of the IRA. Your named beneficiary(ies) will not be subject to the 10% early-distribution penalty tax. Distributions to your beneficiary(ies) will be made in accordance with the required minimum distribution rules and your IRA agreement.

How do I move assets from one IRA to another?

There are two methods you can use to move assets from one IRA to another:
  • Rollover – For a rollover, you have 60 calendar days following the date of receipt to roll over the distribution to another IRA. Rollovers from IRAs may not occur more than once during a 12-month period (this rule applies to each separate IRA that you own).
  • Transfer – A transfer occurs when the assets are moved from one IRA to another IRA without you having control or custody of the assets. There are no time or frequency limits on the number of transfers permitted.

 

Piggy bank

Roth IRA

A Roth Individual Retirement Account (IRA) is an account that allows nondeductible contributions but features tax-free withdrawals for certain distribution reasons after a five-year holding period. The term "tax-free" means free from federal income taxes.

FAQs

Am I eligible to have a Roth IRA?

There are two requirements for eligibility to make regular contributions to a Roth IRA: (i) you must have compensation (or your spouse must have compensation), and (ii) your modified adjusted gross income (MAGI) for any tax year cannot exceed certain prescribed limits. These limits are subject to annual cost-of-living adjustments (COLAs), if any.

How much can I contribute to my IRA?

You may contribute any amount up to 100% of your compensation or the current amount set forth by the IRS, whichever is less, aggregated between a Traditional and a Roth IRA. Additionally, if you have attained age 50 or older by the end of your taxable year, you are eligible to make catch-up contributions.

What if I need to access my money now?

A helpful feature of the Roth IRA is that for distributions, regular contribution amounts are returned first without tax or penalty. Converted assets and rollovers from employer plans are returned next. Earnings are returned last.

What happens to my IRA in the event of my death?

Your named beneficiary(ies) will receive the rights to the balance in your Roth IRA. Distributions to the beneficiary(ies) will be made in accordance with the required minimum distribution rules and your Roth IRA agreement.

What assets can I move to a Roth IRA?

  • Traditional IRA – Traditional IRA assets may be converted to a Roth IRA. The distribution is subject to income tax but is not subject to the 10% early-distribution penalty tax.
  • Employer Plan – Eligible assets from an employer plan may be rolled over or directly rolled over to a Roth IRA. The taxable portion of the direct rollover amount is subject to income tax.
  • Designated Roth Account – Assets in a designated Roth account that are part of an Internal Revenue Code Section 401(a), 403(b), or governmental 457(b) plan may be rolled over or directly rolled over to a Roth IRA.

 

Pig-shaped label that says Roth IRA


*IRA information - This is intended to provide general information concerning federal tax laws governing IRAs. It is not intended to provide legal advice or to be a detailed explanation of the rules or how such rules may apply to your individual circumstances. For specific information, you are encouraged to consult your tax or legal professional. IRS Publication 590, Individual Retirement Arrangements (IRAs), and the IRS’ website, www.irs.gov, may also provide helpful information.


To learn more about CDs and IRAs offered by Century Bank, stop by one of our convenient locations or call us at 601-947-7511.