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Individual Retirement Accounts

First Metro Bank offers a variety of Individual Retirement Accounts (IRA’s) including Roth and Traditional IRA’s. Money invested in each of the accounts is deposited into a Certificate of Deposit (CD) and interest is paid based on the requested term and maturity. Please contact or visit a local branch for more information on terms and corresponding Annual Percentage Yields (APY).

Why invest in an IRA at First Metro Bank?

IRA’s are specifically designed to aid working individuals in saving for retirement. As an added advantage, they may offer an income “tax shelter” on the contributed funds and the benefits vary depending upon the type of IRA you choose. (See "Traditional IRA vs. Roth IRA" below and consult your tax advisor for more information.)

All funds in First Metro Bank IRA’s are deposited to Certificates of Deposit. Not only are Certificates of Deposit some of the safest investments in today’s volatile economic environment, but they also offer a stable, fixed investment return over the entire term of the certificate. First Metro Bank offers competitive rates on a variety of terms ranging from 3 months to 5 years.

Traditional IRA vs. Roth IRA

What is the difference between a Traditional IRA and a Roth IRA?

Traditional IRA — The Traditional IRA allows you to defer taxes on the earnings on your contributions until they are withdrawn. Also, certain contributions are tax deductible in the tax year in which you make them. Thus, if you expect to be in a lower tax bracket upon retirement, a traditional IRA may be better suited for you.

Roth IRA — The Roth IRA allows only nondeductible contributions and features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a high tax bracket when you retire, you may benefit more from a Roth IRA than from a Traditional IRA.

Am I Eligible for a Traditional or Roth IRA?

Traditional IRA — You are eligible to establish a Traditional IRA if you are younger than age 70 ½ for the entire tax year and you or your spouse have compensation.

Roth IRA — You are eligible to establish a Roth IRA if you or your spouse have compensation and your modified adjusted gross income does not exceed certain prescribed limits.

Please contact an IRA specialist at 256-386-0600 to learn more about eligibility, contribution limits for each tax year and for any other questions you may have.