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First State Bank and Trust Co.


We offer five types of Individual Retirement Accounts (IRA):

  • Traditional
  • Roth
  • Simplified Employee Pension (SEP)
  • Coverdell Education Savings Account (CESA)
  • Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)

You can set up a traditional or Roth IRA even if you have a retirement plan at work. This includes employer-sponsored programs such as a 401(k), tax-sheltered annuities, Simplified Employee Pension (SEP) plans, Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) and certain government plans.

Open an account or learn more at your local branch.

Frequently asked IRA questions

What’s the difference between a traditional IRA and a Roth IRA?

Traditional IRA
  • Allows you to defer taxes on contribution earnings until they’re withdrawn.
  • Contributions are tax deductible in the tax year you make them.1
  • You will be taxed on the distribution of tax-deductible contributions and all earnings.

Roth IRA
  • Distributions are not taxed.
  • Regular contributions are not tax deductible.
  • Earnings on contributions are also not taxed when distributed.2
  • Better for those in a higher tax bracket at retirement.

Am I eligible to make a regular contribution to either account?
You can make regular contributions to a traditional IRA for the entire tax year if you or your spouse have compensation. You can make regular contributions to a Roth IRA if you or your spouse have compensation or your modified adjusted gross income for any tax year does not exceed certain prescribed limits. These limits are subject to annual cost-of-living adjustments.

Why don’t I just open both accounts?
If you have the funds, this is a viable strategy for minimizing taxes. It does take some planning and precise budgeting, but we’re happy to help you plan the best route or decide on the best account for your goals.

How do I find out more about traditional and Roth IRAs?
Stop by any of our local branches. We will walk you through these accounts in more detail and help you begin your contributions.

¹If you’re eligible.
²Under certain conditions.