TSB Bank Traditional IRA

• A Traditional IRA (Individual Retirement Account) is a special tax deferred savings plan authourized by the Federal Government used to accumulate money for retirement.
• Taxes on interest earned is deferred until money is withdrawn.
• Individuals under 70 1/2 years of age for the entire tax year and have earned income or have received alimony may contribute to a Traditional IRA.
• Individuals under 50 years of age can contribute up to $3,000 in 2002. Individuals over 50 years of age can contribute up to $3,500. You are permitted to contribute up to the maximum amount above, or your earned income for the year, whichever is less.
• Spousal Traditional IRA's allow married couples filing their taxes jointly to contribute the maximum amount to their separate IRA accounts even if one spouse has no earned income. Their combined earned income must be equal to or greater than the contributed amount.
• Some or all of the contributions to a Traditional IRA are deductible from the owner's taxes. The amount depends upon whether or not the owner is covered by an employer sponsored retirement plan. See your tax advisor for more information.
• Traditional IRA's can be opened and contributed to during a given tax year until April 15th of the following calendar year.
• Distributions can be taken without penalty any time after the owner is 59 1/2 years old. Distributions can be taken before the owner is 59 1/2, but they are subject to a 10% federal penalty, unless the distribution meets certain qualifications. See your tax advisor for more information.
• Distributions are taxed during the year that they are taken.
• TSB Bank IRA's can be invested in a 60 Month Fixed Rate CD, or a CD with the right to annually bump up the interest rate at the customers' request

TSB Bank Roth IRA

• A Roth IRA is an individual retirement account to which participants can make non-deductible contributions. Unlike the Traditional IRA, Roth IRA earnings can be tax free.
• Any individual with earned income or receiving alimony may contribute to a Roth IRA, subject to upper limits on that individuals income.
• Individuals under 50 years of age can contribute up to $3,000 in 2002. Individuals over 50 years of age can contribute up to $3,500. You are permitted to contribute up to the maximum amount above, or your earned income for the year, whichever is less. The contribution may also be limited when the individuals Adjusted Gross Income is more than $95,000.
• Spousal Roth IRA's allow married couples filing their taxes jointly to contribute the maximum amount to their separate IRA accounts even if one spouse has no earned income. Their combined earned income must be equal to or greater than the contributed amount.
• An individual can convert a Traditional IRA to a Roth IRA as long as the income limits are met. If a Traditional IRA is converted to a Roth IRA, the individual must pay taxes on all deductible contributions and earnings on the Traditional IRA during that tax year. See your tax advisor for more information.
• Roth IRA's can be opened and contributed to during a given tax year until April 15th of the following calendar year.
• Distributions can be taken without penalty any time after the owner is 59 1/2 years old. Distributions can be taken before the owner is 59 1/2, but they are subject to a 10% federal penalty, unless the distribution meets certain qualifications. See your tax advisor for more information.
• TSB Bank IRA's can be invested in a 60 Month Fixed Rate CD, or a CD with the right to annually bump up the interest rate at the customers' request.

TSB Bank Coverdell Education Savings Accounts

• Formerly known as Education IRA's, Coverdell Education Savings Accounts allow individual to save money to help a young person pay for higher education when that time comes.
• The beneficiary of the Coverdell Education Savings Account must be below the age of 18.
• Contributions are not tax-deductible, but distributions used to pay for qualified education costs of the named beneficiary are tax free.
• Up to $2,000 may be contributed annually per beneficiary. Any contributions to a Coverdell Education Savings Account are wholly separate from any other IRA contributions, and are not counted against those limits.
• The funds in the Coverdell Education Savings Account must be distributed or rolled into a qualifying family member's Coverdell Education Savings Account by the time the beneficiary is 30 years old.
• TSB Bank IRA's can be invested in a 60 Month Fixed Rate CD, or a CD with the right to annually bump up the interest rate at the customers' request

TSB Bank SEP IRA

• TSB Bank IRA's can be invested in a 60 Month Fixed Rate CD, or a CD with the right to annually bump up the interest rate at the customers' request

TSB Bank Qualified Retirement Plan

• TSB Bank IRA's can be invested in a 60 Month Fixed Rate CD, or a CD with the right to annually bump up the interest rate at the customers' request

Important Information About Procedures for Opening a New Account

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 may 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.