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PERSONAL BANKING - Investment Accounts

Investment Accounts Help You Plan For The Future
Oxford Bank offers traditional IRA, Roth IRA, and Coverdale Education Savings Accounts to help you plan for your retirement or children's education expenses. These accounts require a minimum deposit of $50 and may be tax deductible. We recommend checking with your tax advisor for specific information about your tax situation before choosing the IRA that's right for you.

Multiple term options, and two types of rates are available - fixed and variable. Contact us for additional details or stop by one of our branch locations.

More On The Traditional IRA
The Traditional IRA is an account that allows you to defer taxes on the earnings on your contributions until they are withdrawn.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 for which they are made.

Eligibility: You are eligible to establish a traditional IRA if you are younger than age 70 ½ for the entire tax year and have earned income (or your spouse has earned income). You are eligible to establish a Traditional IRA even if you already participate in or are receiving contributions from a retirement plan sponsored by your employer, which may include certain government plans, tax-sheltered annuities, Simplified Employee Pension (SEP) plans, Savings Incentive Match Plans for Employees of Small Employers (SIMPLE), or other qualified plans.

In 2013 the annual contribution limit is $5,500 for those age 49 and younger. Those age 50 or older by the end of the 2013 tax year may contribute up to $6,500.

To Open An Account or for Additional information please visit any one of our branch office IRA representatives.

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

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More On The Roth IRA
The Roth IRA allows only non-deductible contributions and features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are non-deductible and taxed in the year they are earned; if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a Traditional IRA. In 2013 the annual contribution limit is $5,500 for those age 49 and younger. For those age 50 or older by the end of the 2013 tax year, you may contribute up to $6,500. 

Eligibility: There are two requirements for eligibility: you must have earned income (or your spouse must have earned income), and your modified adjusted gross income (MAGI) cannot exceed certain limits (see table below). You are eligible to establish a Roth IRA even if you already participate in or are receiving contributions from a retirement plan sponsored by your employer. This may include certain government plans, tax-sheltered annuities, Simplified Employee Pension (SEP) plans, Savings Incentive Match Plans for Employees of Small Employers (SIMPLE), or other qualified plans.

Additional Roth IRA Contribution Limits

Single Filers
MAGI of $112,000 or less:  Full Contribution
MAGI of $112,000 - $127,000:  Partial Contribution
MAGI of $127,000 or more:  No Contribution
Married, Joint Filers
MAGI of $178,000 or less:  Full Contribution
MAGI of $178,000 - $188,000:  Partial Contribution
MAGI of $188,000 or more:  No Contribution


To Open An Account
or for Additional information please visit any one of our branch office IRA representatives.

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More On The Coverdale Education Savings Account
The Coverdale Education Savings Account (CESA) is a non-deductible account that features tax-free withdrawals for the specific purpose of a child's education expenses. Formerly known as an Education IRA, a CESA may look similar to Traditional or Roth IRAs. Higher education distributions from a Traditional or Roth IRA are only penalty tax-free; the same distributions from a CESA are penalty free and federal income tax free.

The total aggregate contribution into one or more CESAs on behalf of a child (under the age of 18) is $2,000 a year depending on your Modified Adjusted Gross Income (MAGI). The MAGI limits are:

Single Filers
MAGI of $95,000 or less:  Full Contribution
MAGI of $95,000 - $110,000:  Partial Contribution
MAGI of $110,000 or more:  No Contribution
Married, Joint Filers
MAGI of $190,000 or less:  Full Contribution
MAGI of $190,000 - $220,000:  Partial Contribution
MAGI of $220,000 or more:  No Contribution


To Open An Account or for Additional information please visit any one of our branch office IRA representatives.

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means to you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

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IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT