Individual Retirement Accounts (IRAs)

Invest in your future and in yourself with a retirement account with Merchants State Bank. We have several retirement savings options. How much cash will you need for retirement? Stop in or call and let Merchants State Bank help you plan for your golden years.

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It's never too early to start saving for retirement. Merchants State Bank offers a no-fee Traditional IRA Savings Account. The convenience and flexibility of this account make it easy to save for retirement. A Traditional IRA includes the following benefits:

Most contributions are tax deductible when made
Earnings on the account are tax-deferred until distribution
Allows rollovers from retirement or 401(k) plans to shelter those funds until retirement

Traditional Contribution Limits

2022 Contribution Limit: $6,000
2023 Contribution Limit: $6,500
An additional $1,000 contribution is allowed for IRA owners aged 50 or over.

Contact Merchants State Bank for the most current IRS guidelines for a Traditional IRA

It's never too early to start saving for retirement. Merchants State Bank offers a no-fee Roth IRA Savings Account. The convenience and flexibility of this account make it easy to save for retirement. A Roth IRA holds the following benefits:

Investment earnings grow tax-free
Withdrawals of interest and/or principal after five years are tax-free if you are over 59 or will use the funds for qualifying expenses
No age requirements and no mandated minimum distributions
Eligibility to contribute is determined by income levels

Roth Contribution Limits

2022 Contribution Limit: $6,000
2023 Contribution Limit: $6,500
An additional $1,000 contribution is allowed for IRA owners aged 50 or over.

Contact Merchants State Bank for the most current IRS guidelines for a Roth IRA

Looking for an easy, low-cost retirement plan? Why not consider a SEP?

Merchants State Bank offers SEP plans with no annual cost to the employer or employee. SEPs can provide a significant source of income at retirement by allowing employers to set aside money in retirement accounts for themselves and their employees. Under a SEP, an employer contributes directly to traditional IRAs (SEP-IRAs) for all employees (including the employer). A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee's pay, subject to annual limits. Other advantages of a SEP include the following benefits:

Contributions to a SEP are tax deductible, and your business pays no taxes on the earnings
You are not locked into making contributions every year. You decide whether and how much to contribute each year
Generally, you don't file documents with the government. Merchants State Bank files tax forms for you
Sole proprietors, partnerships, and corporations, including S Corporations, can set up SEPs

Contact Merchants State Bank today to learn more about the tax advantages of SEP plans! Start saving today!

The CESA is a useful vehicle for saving for "qualified education" expenses. CESAs are designed to encourage early and consistent savings by offering a convenient way for families to save for college. Merchants State Bank offers a no-fee CESA.

Benefits of the CESA include:

All money grows federal and state income-tax free
All withdrawals for qualified higher education expenses are exempt from federal income tax
The beneficiary can be changed at any time to another member of the beneficiary's family
Make regular contributions through automatic transfers from any Merchants State Bank Checking or Savings account
$2,000 maximum annual contribution limit

Merchants State Bank would like to help you plan for college.