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through opening and contributing to an Individual Retirement Account (IRA). There are two types of IRAs available, a Traditional IRA and a Roth IRA. Each has different structures and benefits for their contributors. Finding the proper IRA for each individual’s needs will make planning for retirement even easier. The Traditional IRA is a tax-sheltered retirement account, meaning the only time IRA income is taxed is upon withdrawal. Deferring taxes allows the IRA funds to grow at a faster rate than a traditional savings account. Another great benefit to the Traditional IRA is that qualified contributions are tax deductible. The Traditional IRA is a better option for those who believe they will be at a lower income level when they retire because their earnings (upon withdrawal) will be taxed at a lower rate. The Roth IRA is not tax deductible, but earnings are tax-exempt, so there is no tax on qualified withdrawals. Even though contributions are taxed up front, it is still

possible to build up a hefty savings and there are no taxes to pay later. Typically, Roth IRAs are a good option for those who are a long way from retirement. IRAs can earn interest in varying amounts depending on what type of account is established. Farm Bureau Bank offers two options for IRA contributions, a Money Market IRA and a Certificate of Deposit (CD) IRA. The Money Market IRA allows accountholders to contribute multiple times over the course of the year. Rates are tiered based upon the balance of the account, so the more that is contributed; the more interest is earned over the years. It only requires a $250 initial opening deposit, and since it accepts unlimited deposits, it is better for those who want to make multiple contributions throughout the year. The CD IRA may be a better option if accountholders want to deposit lump-sum contributions or rollover a previous 401k account or another IRA. The CD IRA requires a $1,000 initial opening deposit. It offers a low-

risk, high-return option in three-month to fiveyear terms. CD IRAs provide all of the securities of a CD, plus the tax advantages of an IRA. Both the CD IRA and the Money Market IRA are FDIC insured and are available for rollovers. The future is not as far away as it seems. Start planning today by opening an IRA. Farm Bureau Bank can help fulfill retirement goals by offering both Traditional and Roth IRAs. For current interest rates and more information about IRA options from Farm Bureau Bank, visit www.farmbureaubank.com or call 1-800-492-3276 to speak with a personal banker.

Clarification n the fall issue, the site of some photos in the Big, Blonde and Beautiful feature was identified as the Diamond K Ranch in Kentucky. The location actually was the Kentucky Horse Park.

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Oklahoma Country • Winter 2006 • 23


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