IRA and SEP Plans
Personal Banking > IRA and SEP Plans
Individual Retirement Accounts (IRAs)
Helping you build your retirement savings with strength and stability. How you invest today will play a major role in how well you live tomorrow. Reaching your financial goals – college for the kids, a comfortable retirement – requires a realistic plan and a commitment. To make your goals more achievable, be sure to put tax-advantaged IRAs from First Virginia Community Bank to work for you
- Competitive rates.
- Interest Compounded daily.
- Low initial deposit - often only $1,000 minimum to open.
- Flexible terms -- 3 to 60 months.
- Interest can be added to your IRA and compounded, deposited directly to your First Virginia Community Bank account, or paid by check.
- Contributions up to $5,000 or 100% of earned income whichever is less to a Traditional IRA are generally tax deductible and grow tax deferred. Along with an additional $1000 if over the age of 50.
- A traditional IRA allows you to contribute until you turn 70 1/2 if your income is earned compensation. You are eligible even if you already participate in a government plan, tax-sheltered annuity, simplified employee pension plan or qualified retirement plan (pension or profit sharing) established by an employer under such provisions as IRA 401(a), IRA 403(b), or IRA 7701(j), subject to Adjusted Gross Income limits described below. For current tax year limits, please contact your tax advisor or local tax office.
A Simplified Employee Pension Plan, commonly known as a SEP-IRA, is a retirement plan distinctively designed for self-employed individuals and small-business owners. When establishing a SEP-IRA plan for your business, you and any eligible employees establish your own separate SEP-IRA; employer contributions are then made directly into each eligible employee’s SEP-IRA. Key features of a SEP-IRA are listed below:
You can establish a SEP-IRA if you:
- Are a sole proprietor, in a partnership, or own a business (of either an unincorporated or incorporated business, including Subchapter S corporations);
- Earn self-employed income by providing a service, on either a full-time or part-time basis, even if you are already covered by a retirement plan at your full-time job.
Contribution Flexibility & Tax Advantages
No annual contribution required / Tax-deductible contributions
- Contribution percentage can vary each year, from 0% - 25% of compensation, up to $49,000 per participant for the year 2009.
- All SEP-IRA contributions must be made by the employer, and the same percentage of compensation must be contributed for each eligible employee (based on W-2 wages) including the employer.
- Investment earnings continue to grow tax-deferred until they are withdrawn.
The deadline to open and contribute to a SEP-IRA is
- Your tax filing deadline (including any extensions).
- For most self-employed individuals and small-business owners, the deadline is usually April 15.
First Virginia Community Bank is not a tax or legal advisor. It is suggested that you consult your personal tax or legal advisor before making tax or legal-related investment decisions.
Please contact us at (703) 436-3800 for more information regarding these products and services.