First State Bank of Wabasha offers the following types of

Individual Retirement Accounts:


Traditional IRA

A Traditional IRA allows you to contribute annually a specific amount of funds toward your retirement if you qualify. All or a portion of your contribution may be tax deductible.  Required Minimum Distributions (RMDs) begin at age 70 ½.  Taxes are deferred until you withdraw funds.  May be subject to a 10% Federal tax penalty if distributions are taken prior to age 59 ½.

  • Closing fee of $25 per plan.
  • Annual fee of $20 per plan based on balance
  • Interest paid monthly or annually


Roth IRA

A Roth IRA allows you to contribute annually a specific amount of funds toward your retirement, but there are income limits for contributing to a Roth IRA.   No Required Minimum Distributions (RMDs).  Money can be left in the plan until you determine when to withdraw.  Withdrawals may be tax-fee if you qualify allowing you the opportunity to have tax-free income when retired.  May be subject to a 10% Federal tax penalty if distributions are taken prior to age 59 ½.

  • Closing fee of $25 per plan
  • Annual fee of $20 per plan based on balance
  • Interest paid monthly or annually


SEP Plans

A SEP is a Simplified Employee Pension plan. A SEP provides employers a simplified method to make contributions toward their employees’ retirement and their own retirement. Contributions are made directly to an IRA set up for each employee (a SEP-IRA).

  • Closing fee of $25 per plan.
  • Annual fee of $20 per plan based on balance
  • Interest paid monthly or annually


For more information on IRA requirements, visit the IRS website.

https://www.irs.gov/Retirement-Plans/Individual-Retirement-Arrangements-(IRAs)-1

 

Health Savings Accounts

A Health Savings Account (HSA) is a tax favored account authorized by the federal government exclusively for the purpose of paying or reimbursing qualified medical expenses of the HSA owner, the HSA owner’s spouse, and dependents.  Contributions to an HSA are tax deductible and distributions to pay or reimburse qualified medical expenses are tax free.

To be eligible for an HSA account, you must be covered by a High Deductible Health Plan (HDHP).

As your custodian, First State Bank will report annually to the IRS.  Contributions made to you HSA will be reported on form 5498SA.  Any distributions you take will be reported on form 1099SA.  HSA account owners are responsible for keeping all their medical receipts for distributions taken.
 

First State Bank of Wabasha offers the following types of

Health Savings Accounts:

HSA Savings:
Maintain a minimum balance of $100.00 and earn the current rate. Interest is compounded monthly. The rates may change daily. If your balance falls below $100.00 on any day in the month, your account will be subject to a $1.00 service charge for the month. Statements on the account are produced monthly.  We impose a $5.00 closing fee. We charge $5.00 for additional 5498 forms for each beneficiary.


HSA Checking:
No minimum balance required to earn the current rate. Interest is compounded monthly. The rates may change daily. No monthly service charge and no per check charge.  A debit card may be issued with this account.  The first two debit cards are free, additional cards are $5.00 each. Statements on the account are produced monthly.  We impose a $5.00 closing fee. We charge $5.00 for additional 5498 forms for each beneficiary.

Additional information on Health Savings Accounts can be located at the following links:
https://www.irs.gov/publications/p969/
https://www.treasury.gov/resource-center/faqs/Taxes/Pages/Health-Savings-Accounts.aspx

Multiple Deposit Savings Calculator
IRA Certificates Rates View All Rates

IRA Variable

0.50% (APY)
  • Min to Open: $100
  • Min BAL TO OBTAIN APY**: $100
  • Interest rate: 0.50%
  • Compound & Credit Frequency: Monthly

IRA 24 Month

1.20% (APY)
  • Min to Open: $500
  • Min BAL TO OBTAIN APY**: $500
  • Interest rate: 1.20%
  • Compound & Credit Frequency: Annually

IRA 60 Month

2.10% (APY)
  • Min to Open: $500
  • Min BAL TO OBTAIN APY**: $500
  • Interest rate: 2.10%
  • Compound & Credit Frequency: Annually

*Attention HSA Debit Card Holders*

HSA Debit Cards are Being Replaced

Due to a change with VISA, the Debit Cards for our Health Savings Accounts are being replaced. Your current HSA Debit Card no longer works and you should receive your replacement card by the end of February. In the meantime, we can offer two solutions. One solution is for you to use your regular checking account debit card and reimburse yourself from your HSA. Another solution is that we can issue you checks, so that you may write checks out of your Health Savings Account. 

We apologize for any inconvenience that this may have caused and feel free to contact us to further assist you. Thank you.