Piedmont Federal offers a wide variety of retirement savings accounts designed to help you save now so you can spend your retirement the way you want. Retirement accounts are available with fixed rates with terms of 6 months, 12 months, 18 months, 30 months and 48 months, and with a variable rate with a term of 18 months. Choose from two personal retirement savings accounts — with possible tax deductions or deferments with a traditional IRA, or tax-free earnings with a Roth IRA.
A no-fee retirement account that offers you the stability of fixed rates with
guaranteed returns. Our Traditional IRAs allow almost anyone under age 70
1/2 to contribute up to $5,000 of earned income annually for you and/or your
spouse. Married couples may contribute up to $5,000 each even if only one
has earned income. It offers a tax deferral of the earnings until they are
withdrawn and a possible tax deduction, dependent upon certain income limits
and your participation in an employer-maintained retirement account. Individuals
50 and over have an opportunity to make additional "catch up" contributions
of $1,000. And now our IRAs are FDIC insured up to $250,000, so you can consolidate
all your IRAs into one account.
A nondeductible account that offers tax-free earnings on your contributions as long as you have reached age 59 1/2 and your account has been open at least five years before earnings are withdrawn. Contributions can be withdrawn at any time, tax free. You may contribute up to $5,000 of earned income for you and/or your spouse (certain income limitations could reduce or eliminate the contributions). As with the Traditional IRA, individuals 50 and over have an opportunity to make additional "catch up" contributions of $1,000 annually.
NOTE: It is important to remember that the annual contribution can be divided between the two types of IRAs as you choose.
SIMPLIFIED EMPLOYEE PENSION (SEP) PLAN
FDIC deposit insurance is now $250,000 per depositor.
A SEP is a great plan for self-employed individuals and small companies. It
is a retirement plan that allows any employer to contribute up to 25% (maximum
of $49,000 for 2011) of each employee's compensation into their own IRA. The maximum compensation limit is $245,000 in 2011. These deposits provide a tax deduction
for the employer, and the contributions do not affect the employee's participation
in other types of IRAs.