1st Source Bank

Individual Retirement Accounts

Save for retirement today!
Open an account online or at a convenient banking center.

An Individual Retirement Account (IRA) is a popular retirement plan that provides tax-advantaged savings for retirement. An IRA can be used as an effective way to supplement other long-term savings vehicles.
While your money is in an IRA, you will not pay any current income tax on the interest, dividends or capital gains earned. This means that your savings may compound more quickly than in a taxable account. At normal distribution age you'll pay taxes on your original investment and earnings at your ordinary income tax rate. 1st Source has several options to help you achieve your retirement goals.
==>  IRA Savings Account - Get your savings started!
An IRA Savings Account offers you a smart way to get started saving for retirement. Begin with as little as $25. Make regular contributions that fit your budget. Arrange direct deposit or automatic transfer of your contributions to make it even easier to save.

Check out this big PLUS:
If you make at least 24 automatic transfer contributions into your IRA Savings account per year, you will earn a higher rate of interest for the next calendar year. Ask a banker for more information about this opportunity.

Open an account today.

IRA-CDs - A great retirement savings strategy!
An IRA-CD works just like any Certificate of Deposit to guarantee the growth the money in your IRA. Regardless of which IRA-CD term you choose, your money increases tax-deferred. It earns a fixed interest rate for a fixed timeframe that can range from 7 days to 10 years.
Your IRA-CD renews automatically, until the time you begin withdrawing funds. And it’s insured up to applicable limits determined by the Federal Deposit Insurance Corporation (FDIC).
IRA Investments
Ask a 1st Source banker or advisor for more information about IRA Investments.
Consult your tax advisor for more information.

Types of IRAs
There are three different types of IRAs with different features, benefits and rules.

Traditional IRA
  • Contributions may be tax-deductible in the year they’re made.
  • Save now, pay later: your money grows tax-free until you begin taking distributions, at which time you’ll pay taxes on both your contributions and your earnings.
  • Anyone under the age of 70½ who has an earned income can invest in a Traditional IRA-CD.
  • Consult your tax advisor for more information.
Roth IRA
  • Contributions are not tax-deductible, but distributions are generally tax-free. Anyone who has an earned income can invest in a Roth IRA – there are no age restrictions, since contributions are funded with after-tax dollars.
  • Participation in a 401(k) plan isn’t a factor in determining contribution amounts.
  • Consult your tax advisor for more information.
Coverdell Education Savings Account (ESA)
  • Contributions are not tax-deductible.
  • Withdrawals are tax-free when used for a child’s qualified higher education expenses.
  • Consult your tax advisor for more information.