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Time Deposits, IRAs & Health
Savings Accounts

Time Deposits

  • Minimum deposit of $1,000 required.
  • Terms range from 92 days to 5 years.
  • Rate is fixed for the duration of the certificate term.
  • Interest can be compounded, credited to a savings or checking account or sent to the customer by check.
  • Certificates may be used as collateral on a loan with the bank.
  • A penalty may apply for early withdrawal.
  • Federally insured up to $250,000
  • See our rates page for more information »

Roth & Traditional IRAs

Roth IRA – The Roth IRA allows you to contribute up to $5,500 for tax year 2013 and tax year 2014.  If you are over 50, you can deposit an additional $1,000 as a catch up contribution. Like the CESA IRA, contributions to a Roth IRA are not tax-deductible. Instead, you pay no taxes when you withdraw the money, provided it’s been in the account at least five years and: you are older than 59-1/2, or you become disabled, or you die and it’s paid to your beneficiary, or you use the money for a first-time home purchase ($10,000 lifetime withdrawal limit).

Unlike the traditional IRA, which requires you to begin withdrawing money at age 70-1/2, the Roth IRA has no such requirement. You can let the money keep working, while earnings continue to grow tax-free, for as long as you like.

ROTH IRA Eligibility MAGI Thresholds
Filing Status Tax Year Full Contribution Partial Contribution No Contribution
Single 2014 < $114,000 between $114,000 and $129,000 ≥ $125,000
Married, Joint 2014 < $181,000 between $181,000 and $191,000 ≥$191,000
Married, Separate 2014 N/A <$10,000 ≥$10,000

See IRS Publication 590 for more information on calculating ROTH IRA contribution amounts.

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Traditional IRA – Even the traditional IRA is better with higher income limits and new penalty waivers. The Traditional IRA allows you to contribute up to $5,500 for tax year 2013 and tax year 2014.  If you are over 50, you can deposit an additional $1,000 as a catch up contribution. The contribution deadline is your income tax return filing due date, not including extensions.

Traditional IRA Eligibility MAGI Thresholds
Filing Status Tax Year Full Deduction Partial Deduction No Deduction
Single 2014 ≤ $60,000 more than $60,000 and less than $70,000 ≥ $70,000
Married, Joint 2014 ≤ $96,000 more than $96,000 and less than $116,000 ≥$116,000
Married, separate 2014 N/A <$10,000 ≥$10,000

See IRS Publication 590 for more information on calculating Traditional IRA deductions.

So stop by or call us at 419-582-2681 for all the details about how you can stretch your retirement savings with IRAs.

IRAs offered through Osgood State Bank are FDIC insured up to $250,000.

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Health Savings Accounts

A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into a Health Savings Account, including favorable tax treatment.

Contributions to your HSA can be made by you, your employer or both. However, total contributions are limited annually. If you make contributions, you can deduct the contributions (even if you do not itemize deductions when completing your federal income tax return.)

In order to participate in an HSA, you must meet the following criteria:

  • You must have coverage under an HSA qualified “High Deductible Health Plan”
    • Federal law requires that the health insurance deductible must be at least $1,250 for self only coverage and $2,500 for family coverage.
  • Annual out of pocket expenses under the plan (including deductibles, co-pays and co-insurance) cannot exceed $6,350 for self only coverage and $12,700 for family coverage.
  • You may not be claimed as a dependent on someone else’s tax return
  • You can not be enrolled in Medicare
  • You can not be covered under any other non-HSA qualified insurance plan
HSA Contributions
Insurance Status Tax Year Full Contribution Catch up for those over 55 Total Contribution
Single – Self Only 2014 $3,250 $1,000 $4,250
Family Coverage 2014 $6,450 $1,000 $7,450

Other advantages to the HSA include: security, affordability, flexibility, savings, control, portability, ownership and most importantly, tax savings. An HSA provides you with triple tax savings through:

  • Tax deductions when you contribute to your account
  • Tax free earnings through investment
  • Tax free withdrawals for qualified medical expenses.

You can use the money in your account to pay for any qualified medical expenses permitted under federal tax law. This includes most medical care and services including dental and vision care.

Our competitive interest rates and no fee accounts have been a great solution for those individuals who qualify.

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Coverdell Education Savings Accounts

Congress created the Coverdell Education Savings Account (CESA) to help families save for their children’s education expenses. CESA contributions are not tax deductible, but earnings are tax deferred and distributions for qualified education expenses are tax free. CESA accounts allow families to save for any postsecondary education by investing up to $2,000.00 a year per child, as long as the child is under age 18.

Anyone considering a CESA for a child should check IRS publication 970, Tax Benefits for Education, or consult with a financial planner or a tax or legal professional to determine the best program for a child’s education needs.

As the following chart shows, the Modified Adjusted Gross Income (MAGI) ranges determine full, partial and no contribution categories for an individual based on whether he/she files a joint federal income tax return.

CESA Contribution MAGI Thresholds
Filing Status Full Contribution Partial Contribution No Contribution
Joint Filers MAGI $90,000 or less MAGI between $190,000 and $220,000 MAGI $220,000 or more
All Other Individuals MAGI $95,000 or less MAGI between $95,000 and $110,000 MAGI $110,000 or more

Qualified expenses include tuition, fees, books, elementary and secondary school expenses, computer technology or equipment--even online access--that the beneficiary uses while in school, and equipment required for enrollment or attendance at nearly any postsecondary educational institution. Certain room and board expenses may also qualify.

All balances must be distributed within 30 days of the child reaching age 30; otherwise the parent may have to pay taxes on any earnings, plus an additional 10% penalty.

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Simplified Employee Pension (SEP)

A Simplified Employee Pension (SEP) plan is a retirement plan created especially for self-employed individuals and employees of small businesses. If you are self-employed, you can establish your own SEP and make tax-deductible contributions to it. If you work for a small business, your employer may establish a SEP and make contributions to it on your behalf. The account grows tax-deferred until you withdraw the money at retirement. The money that you or your employer contribute to the SEP IRA is vested immediately, meaning it’s yours to keep no matter what your length of employment. Contributions of up to 25% of your pay can be made (up to a maximum of $51,000 for 2013 and $52,000 for 2014).

Savings Incentive Match Plan for Employees (SIMPLE) IRA

If your employer offers a SIMPLE Retirement Plan, your contributions can be made to a SIMPLE IRA at Osgood State Bank. With a SIMPLE IRA, you make pre-tax contributions to your account, reducing your taxable income. The account grows tax-deferred until you withdraw the money at retirement. If you are eligible, your employer will also make a contribution into your account. The money that you and your employer contribute to the SIMPLE IRA is vested immediately, meaning it’s yours to keep no matter what your length of employment. The SIMPLE IRA allows you to contribute up to $12,000 in tax years 2013 and 2014.  If you are over 50, you can deposit an additional $2,500 as a catch up contribution. A SIMPLE IRA is a great way to save for a financially secure retirement.

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