Individual Retirement Accounts (IRAs)

• Competitive interest above standard savings rates for balances of $500 or more
• Traditional IRA, Roth IRA, and Coverdell ESA options
• Self-directed IRAs available
• No setup fees
• No monthly or annual maintenance fees
• $5,000 contribution limit per year
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Contributions may be tax deductible*
• $500 minimum deposit to open

Self Directed IRA option also available. Use funds to purchase and hold F&M Bancorp stock.

*Consult a tax advisor.

There are advantages to both Traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A Traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

• No income limits to open
• No minimum contribution requirement
• Contributions are tax deductible on state and federal income tax*
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59 ½
• Early withdrawals subject to penalty**
• Mandatory withdrawals at age 70 ½  

Roth IRA 

• Income limits to be eligible to open Roth IRA***
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal*
• Principal contributions can be withdrawn without penalty*
• Withdrawals on interest can begin at age 59 ½
• Early withdrawals on interest subject to penalty**
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

*Subject to some minimal conditions. Consult a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***Consult a tax advisor.