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Horizon Bank

Individual Retirement Accounts (IRAs) are designed to help you plan for your retirement. Horizon Bank IRAs, including the Horizon Bank Rollover IRA, are available as both Traditional and Roth IRAs.

The Horizon Bank Rollover IRA is an excellent choice when you are changing jobs or retiring. A Rollover IRA will help you "roll over" your funds from your previous employer directly into an IRA; saving you from significant taxes and other penalties.

  • Continue to accrue tax-deferred earnings
  • Transfer retirement savings without tax penalties or other hassles
  • No limits on the rollover amount1
  • Rollovers can be opened at any time2

Note: For Roth IRAs earning withdrawals cannot be taken without penalty until at least 5 years from the date of the first contribution or conversion.

1: Future contributions follow the same limitations as a Traditional or Roth IRA. For tax year 2015 & 2016  you can contribute $5,500). For age 50 or older a contribution of $6,500 in 2015 & 2016 may be contributed. However, currently there is no AGI limit on conversion to Roth IRAs.

2 Rollovers can be opened anytime as long as it is within 60 days of the distribution of assets from your employer-sponsored plan once per year.

FAQ

Am I qualified for a Horizon Bank Rollover IRA?

Almost anyone with a qualified employer plan distribution can invest funds into a Rollover IRA. (Exceptions include: mandatory distributions, required minimum distributions, distributions on amounts that exceed limits, non-spousal death benefit distributions. Hardship withdrawals and outstanding loan balances.

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What are the Tax Advantages of an IRA Rollover?

Contributions when rolled over remain tax-deferred as well as any additional earnings to the account.

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Are there Limits on Rollover IRA Contributions?

There are no limits on the rollover amount.  
Future contributions follow the same limitations as a Traditional or Roth IRA. For tax year 2015 or 2016 you can contribute $5,500. For age 50 or older a contribution of $6,500 in 2015 & 2016 may be contributed. For the Roth IRA, there is a phase out of contribution amounts as AGI approaches these certain limits. However, currenlty there is no AGI limit on conversion to a Roth IRA.

NOTE: There are time limits and how fequent you can move your finds.  See question Is there a deadline for Account Opening & Contributions on a Rollover IRA?

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Is there a deadline for Account Opening & Contributions on a Rollover IRA?

Rollovers can be opened anytime as long as it is within 60 days of the distribution of assets from your employer-sponsored plan only once per year.

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Do I Pay Taxes On Withdrawals?

Yes. Any withdrawals (not including nondeductible contributions) will have regular income taxes and possible penalties if qualifying conditions are not met. There are no taxes or penalties on qualified direct rollovers.

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Are Withdrawals Mandatory?

Yes. Beginning at age 70 withdrawals will be required for Traditional IRAs. There is no requirement for Roth IRA withdrawals. Inherited IRAs of all types have withdrawal requirements.

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When Can Withdrawals Be Made?

Withdrawals can potentially incur a 10% penalty with exception of the following: upon reaching age 59 1/2, death or permanent disability, beneficiary of deceased IRA owner, qualified military reservist distribution, certain medical expenses, first home purchase (maximum of $10,000), qualified higher-education expenses, 72(t) periodic payments.

Note:  For Roth IRAs earning withdrawals cannot be taken without penalty until at least 5 years from the year of the first contribution or conversion.

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What are my Investment options with a Rollover IRA?

Horizon Bank offers both FDIC insured options such as Certificates of Deposit and non-FDIC options, including stocks and mutual funds, through Horizon Trust & Investment Management.

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