Wealth FAQ

Individual Retirement Accounts (IRAs) are designed to help you plan for your retirement. They are technically a type of savings plan, but designed to offer significant tax benefits that save you the most money for when you're ready to retire.

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 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.

Yes. Beginning at age 72 (or 73 if you turned 72 after December 31, 2022) withdrawals will be required for Traditional IRAs. There is no requirement for Roth IRA withdrawals. Inherited IRAs of all types have withdrawal requirements.

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.

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.)

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

There is no limit on the amount you can roll over into a Rollover IRA. Rollover funds do not count toward annual IRA contribution limits.

Any new contributions made after the rollover follow the standard IRA rules. For the 2026 tax year:

You may contribute up to $7,500 if you are under age 50

You may contribute up to $8,600 if you are age 50 or older

For Roth IRAs, contribution eligibility is subject to income (MAGI) limits, which may reduce or eliminate how much you can contribute.  However, there is no income limit on converting funds to a Roth IRA, though the converted amount may be taxable.

Note: IRS rules apply to timing and frequency of rollovers, including deadlines for completing a rollover and limits on certain types of transfers.

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

Horizon Bank has a variety of options to work around or supplement employer-sponsored plans. We often find that you can save additional money in conjunction with these plans, and together we can figure out exactly how much more you can save.

Horizon Bank wants to ensure we do all we can to correct any issues you may have. You may submit your concern in any of the following ways:

1. You can submit a complaint in online banking using the secure message function, located in Services & Settings
2. By phone or in person at your local branch
3. Contacting our Communications Center at 888-873-2640
4. In writing by sending your letter to Horizon Bank PO Box 800 Michigan City, IN 46361

Horizon Bank provides guidelines for processing subpoenas and other legal documents, including summons, garnishments, and governmental inquiries. Subpoenas, and legal documents must be served on the registered/resident agent in the appropriate state. Horizon Bank also charges applicable fees for document requests, research, and delivery services. For more details on submission requirements and associated costs, refer to the full document linked below.

Information for Horizon Bank Legal Document Processing

A Living Trust will allow you to secure and manage a variety of assets, such as collectibles, your investment portfolio, or even a closely held business.

As the trustee, you will be able to control your estate planning until you have directly appointed a new trustee or if you are no longer able to manage your estate through incapacitation or death. At that point, your successor trustee will gain full control over the administration of trust assets.

Our Special Needs Trust and Supplemental Needs Trust are often established for individuals with physical or mental developmental challenges, individuals disabled due to accident, and elderly individuals.

The Special Needs Trust and Supplemental Needs Trust have been designed with an understanding that your beneficiaries may have unique situations where a normal trust could compromise their ability to get the government support they need. With these trusts, we ensure that the assets provided to your beneficiaries through your trust will not prevent them from being eligible for critical benefit programs like Medicaid.

Spendthrift trusts are designed to ensure that our Horizon Bank expert Advisors will manage your trusts effectively should you believe that your beneficiaries would not be able to fulfill your wishes. Through this trust, you will be able to supplement the financial needs of your loved ones without relinquishing full control over all funds. This way, you can ensure that those you care about will get the support they need while ensuring the stability of your trust for the future.

Your Horizon Bank Trust Advisor will work with you to determine restrictions regarding the distribution of trust funds. You will also be able to set up a requirement that certain beneficiaries must provide proof of external income before they are eligible to receive the distributions you have stipulated.