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Security First Bank of North Dakota

Retirement Accounts

Traditional IRAs

A Traditional IRA is a long term savings plan that enables you to build a retirement fund on which you pay no federal income taxes on the earnings until you start to make withdrawals. Every IRA contributor receives this benefit.

In addition, many wage-earners are eligible for a full federal tax deduction. Some wage-earners are eligible for a partial deduction; others, no deduction.

Roth IRAs

The Roth IRA allows you to invest after tax dollars today, let the investment grow tax-deferred and take qualifying withdrawals tax-free. If you do not withdraw any of the earnings for at least five years, and satisfy one of the qualifying events, those tax-deferred earnings become tax-free.


Can I Move IRA Funds from an institution to Security First Bank?

Yes, by either a “rollover” or “transfer.”

A rollover applies when IRA funds are paid directly to you, and then within 60 days you redeposit the funds into another IRA at another institution. You can not make such a rollover more than once during any 12 month period. This applies to each individual IRA you own.

A transfer applies when your funds are moved directly from one institution to another without being paid directly to you. You may transfer IRA funds in this manner as often as you like. You may also transfer funds back to the original institution, should you so desire.

How about pension or profit sharing funds distributed by my employer?

If funds you have in your employer’s plan are paid directly to you, it is your responsibility to select an IRA provider and to contribute your funds into an IRA. You must provide a written election to treat your contribution as a rollover. Your current plan administrator must, by law, withold 20% of your eligible rollover distribution.

You must complete your rollover by the 60th day following the day you receive your distribution. If you do not, and you are under age 59½, you may be subject to a 10% penalty tax.

You can also elect to have your employer transfer your funds directly into an IRA plan or another qualified plan. It is your employer’s responsibility to provide you with a written explanation of your distribution options prior to making the distribution. It is your responsibility to designate the plan to which your distribution is to be transferred. In this method your employer does not withhold funds from your distribution.

Are my IRA funds insured?

Effective April 1, 2006 all IRA deposits (plus all self-directed qualified plan deposits, if any) of a single individual at the same financial institution are separately insured for a maximum combined total of $250,000.

The information contained on this page is general information only and is not intended to provide specific advice or recommendations for any individual. Consult your financial or tax advisor with regard to your personal situation.