The Neffs National Bank offers the two most commonly used IRAs, Traditional and Roth. The questions below are most frequently asked regarding IRAs. This is meant to be an overview on the most common situations. Our Customer Service Representatives will be glad to answer any other questions you might have in order to provide you with the best possible product for you.

  • What is an IRA?
      IRA stands for Individual Retirement Account and is one way for an individual to save for retirement and get a tax break for doing so. With our current economic climate you can't depend on Social Security or just an employee contribution plan to survive your "retirement years" comfortably. Now more than ever it has become the individual's responsibility to add to his or her retirement fund.
  • What is the difference between a Traditional and Roth IRA?
      Traditional: With this IRA, you are allowed to defer taxes on the earnings from your contributions until they are withdrawn. In addition, qualifying contributions can lower your taxable income for the tax year in which you deposited money into your account. So your contributions and earnings could grow tax-deferred until you start withdrawals.
      Roth: In contrast with a Roth, your contributions are never deductible. But the good news is that the money has already been subject to taxes, so all the money contributed and earnings are tax-free even when you make withdrawals, assuming you have held the account open for at least five tax-years and you are at least 59 1/2.
  • Is there a fee to open an IRA account at The Neffs National Bank?
      No, this is one of the many services The Neffs National Bank provides for its customers free of any fees.

  • What are the benefits of investing in an IRA at The Neffs National Bank, why not just add
         to other investments?
      The Neffs National Bank is FDIC insured. The Federal Deposit Insurance Corporation is an independent agency of the United States government. So our depositors are protected against the loss of their deposits, including all IRA accounts as the federal law provides for insurance coverage of up to $250,000 for all IRA accounts. In other words, it is wise to balance your investments, and as they say "Don't put all your eggs in one basket".
  • What if a situation occurs and I need to make a withdrawal, how fast can I get my money?
      That is another advantage of putting money in an IRA account here at The Neffs National Bank; in most cases we can put that check in your hand the same day as the request. Our lobby is open: Monday through Thursday - 9:00 a.m. to 3:00 p.m., and Friday - 9:00 a.m. to 8:00 p.m.
  • What is the deadline for making contributions to my Traditional IRA to take advantage of a     tax break for current tax year?
      You can contribute to an IRA up until April 15 of the year following a particular tax year, which means you can contribute to an IRA on April 15, 2008 for the 2007 tax year.
  • When is the best time to open an IRA Account?
      As they say… There is no time like the present! Just call 610-767-3875 or stop by The Neffs National Bank during our lobby hours and talk to one of our Customer Service Representatives who will help you get started.


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