Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

The future can have a way of sneaking up on you. But it doesn't have to be that way! Make sure you're prepared and start saving for retirement with an IRA from First National Bank and Trust.

We offer both traditional and Roth accounts, each with unique tax advantages. Enjoy tax-free or tax-deferred earnings and the freedom to control your investment with our self-directed IRA option. No matter which one you choose, you can rest easy knowing your financial future is bright, and your retirement is secure.

  • Save money for retirement
  • Interest bearing accounts
  • Traditional and Roth available
  • Available as a CD option
  • Tax free and tax deferred options
  • Self-directed option with wide range of investment choices
  • Consolidated monthly statements document activity and holdings
  • Simplified single account with one annual fee
  • Some age and deposit limits apply
  • Penalty for early withdrawal

Self-Directed Investments Take Control

With a self-directed IRA, you control how and where your money is invested, so you enjoy a wider range of investment choices than with regular IRAs, which are typically limited. Self-directed IRAs deliver more options, allowing you to choose from a full spectrum: stocks, bonds, mutual funds, unit investment trusts, and more.


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 for 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.

Traditional IRA

With a traditional IRA, you pay no taxes on earnings until distribution, allowing you to reap the full advantages of compounding. Contributions are tax deductible up to certain income limitations, giving you yet another tax privilege. Even if your contribution becomes non-deductible, it still makes sense to contribute simply for the tax-deferral benefits.


  • No annual fee or setup charges
  • Anyone under age 70.5 can open
  • Earnings accumulate tax-deferred
  • Contributions are tax deductible
  • $5,000 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50 and up
  • Withdrawals can begin at age 59.5
  • Early withdrawals subject to penalty*
  • Mandatory withdrawals at age 70.5

*Certain exceptions apply.


If you have compensation as defined by IRS Publication 590, and you are under the age of 70.5 for the entire tax year, you can open a traditional IRA, even if you participate in an employer-sponsored plan. In the case of a married couple filing a joint Federal Income Tax return, a spousal contribution can be made if only one spouse has compensation or elects to be treated as if he or she has no compensation.

Roth IRA

All contributions to a Roth IRA and assets converted from a Traditional IRA are made with after-tax dollars. That means you don't get to write off contributions as a deduction. But, because you've already paid the taxes, interest grows tax free, meaning you pay nothing when you withdraw funds from your accumulated earnings at retirement.

  • No annual fee or setup charges
  • Earnings and principal are tax free upon withdrawal
  • Contributions are not tax deductible
  • $5,000 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50 and up
  • Principal may be withdrawn penalty-free at any time
  • Earnings can be withdrawn penalty-free at age 59.5
  • Early dividend withdrawals subject to penalty*
  • No mandatory distribution age

*Certain exceptions apply.


If you have compensation as defined by IRS Publication 590 and your modified adjusted gross income (MAGI) does not exceed certain limitations, you can open a Roth IRA even if you are already participating in an employer-sponsored plan. There is no 70.5 age limit on making contributions, nor is there a required minimum distribution mandated at age 70.5. Eligibility gradually phases out when MAGI is between $95,001 and $109,999 (single), $150,001-$159,999 (married filing jointly). When your income exceeds the MAGI maximums, you are no longer eligible to make a Roth IRA contribution.

Conversion from a Traditional IRA

Any existing Traditional IRA account balances may be converted into a Roth IRA if your household MAGI is $100,000 or less. This may allow your earnings to accumulate tax-free. The amount converted will be subject to income taxes. Please seek advice from a certified tax advisor when considering whether this is a wise option for you.

Roth IRA Distributions

You may take tax-free, penalty-free distributions from your Roth IRA if you satisfy two conditions:

  • You must meet a five-year holding period that begins with the tax year in which you fund your initial Roth IRA contribution.
  • Your distribution must be for one of the following reasons: attainment of age 59.5; death or disability; first-time home purchase. Distributions that don't meet these two conditions will be subject to tax and potential penalty.