Individual Retirement Accounts (IRAs)

At Stillman Bank we offer two types of Individual Retirement Accounts (IRAs) that provide you with affordable ways to save for your retirement. Choose one today and start saving for tomorrow.

Traditional IRAs

The Traditional IRA is an account which allows you to defer taxes on your earnings until they are withdrawn. Contributions to a Traditional IRA may be tax deductible in the tax year for which they are made. (Consult your tax advisor regarding the tax deductibility for your particular situation.)

Roth IRAs

The Roth IRA allows for after-tax contributions. However, the Roth IRA features tax-free withdrawals for certain distribution reasons after a five-year holding period. That’s the best part of the Roth IRA – you pay no federal taxes on any of the earnings that your money generates (provided you withdraw the earnings as part of a qualified distribution).

Qualified distributions are those taken after the five-year holding period for any of the following reasons: after reaching age 59½, a first-time home purchase, permanent disability, or in the event of your death.

Also, because the contributions to a Roth IRA are nondeductible, you can always get back your principal tax-free and IRS penalty-free for any reason.

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Why Choose Stillman Bank

Access to 40,000 ATMs surcharge-free through the MoneyPass^® ATM Network

Enhanced Mobile Alerts providing instant access to account information including account balances, debit card transaction notifications, and more! (Text messaging fees from your cellular provider may apply.)

Common Questions

What’s the biggest difference between an IRA and a Roth IRA?

With a traditional IRA your contributions may be tax deductible, and your withdrawals are taxable as income. You are required to start taking required minimum distributions at the age set by the IRS. With a Roth IRA your contributions are made from income you’ve already paid taxes on, so your withdrawals would not be taxed in retirement. Roth IRAs don’t have a required withdrawal date.

How is an IRA different from a 401(k)?

All 401(k) plans are offered by employers and are made with pretax dollars. Your contributions reduce your taxable income, but you’ll pay taxes when you withdraw your funds in retirement. Most IRAs are set up by individuals, separately from their employer. They both have required minimum distributions.

Are IRAs covered by the FDIC?

It depends. Any of your IRA funds that are held in bank deposits (CDs, savings, money market, etc.) would be covered just like your regular savings and checking accounts, up to $250,000 per depositor. Any IRA funds that are in stocks, mutual funds, and similar investments would not be covered.

Open an Account or Speak with a Banker Today

If you’re looking for an individual retirement account in northern Illinois and southern Wisconsin, or if you have any questions, please contact us or speak with a banker at your nearest branch.