Traditional IRAs

Are you unsure of what type of IRA best suits your needs? A Traditional CD IRA from Central National Bank is an interest-bearing retirement account for individuals under the age of 70½ who want to build a tax-deferred fund to supplement retirement income.

Traditional IRA profile

• Often contributions are deductible
• Earnings grow tax-deferred until withdrawn
• Distributions are generally taxable, but penalty-free if withdrawn under one of the following circumstances:

1. Attaining the age of 59½
2. Incurring a disability
3. Payment for certain health insurance, medical expenses and higher education expenses
4. Payment for first home purchase
5. Taking equal periodic payments, or
6. Death (payments to beneficiaries)

• Distributions are required to be taken by Traditional IRA holders beginning at age 70½.
• Maximum contribution for 2011 is $4,000 per year (maximum contribution is $5,000 per year for those 50 and older).