FDIC Insurance for Retirement Accounts Increased to $250,000
Higher coverage takes effect April 1

Under the FDIC's new rules, up to $250,000 in deposit insurance will be provided for the money a consumer has in a variety of retirement accounts, primarily traditional and Roth IRAs (Individual Retirement Accounts), at one insured institution. Also included are self-directed Keogh accounts, "457 Plan" accounts for state government employees, and employer-sponsored "defined contribution plan" accounts that are self-directed, which are primarily 401(k) accounts.

In addition, the IRAs and other retirement accounts that will be protected under the new rules to $250,000 are insured separately from other accounts at the same institution that will continue to be insured up to at least $100,000.

Are you looking for a competitive guaranteed return and security for your retirement savings?

An Individual Retirement Account (IRA) is an excellent savings tool designed to provide additional retirement income while offering tax benefits that other savings options just can't match. IRAs are not just for retirement! They can help plan for a secure future as well. An IRA can help you save for a down payment on your first home and even pay for you or your family's higher education expenses. At 1st Constitution Bank, we offer a wide range of IRA investment options to help you meet your financial goals. Open an IRA Certificate of Deposit or an IRA Savings account with 1st Constitution Bank today.

For more information:

Email or call:
609.655.4500

Open an IRA Certificate of Deposit or an IRA Savings account with 1st Constitution Bank today.

Which IRA Is Right For You?

Traditional, Roth, and Education IRA
Traditional IRA

Would you like to save for your retirement and possibly receive an additional tax deduction in the process? A Traditional IRA provides the option to do just that! With a Traditional IRA you may be able to use your contribution as a tax deduction. Your contributions and interest can grow tax deferred, providing you opportunity for greater savings.

An IRA from 1st Constitution Bank is a great way to plan your way to a secure tomorrow!

Roth IRA

Would you like to save for your retirement while enjoying TAX-FREE earnings? With a Roth IRA, the earnings on contributions are tax-free when withdrawn as a qualified distribution. The Roth IRA, like the Traditional IRA, can help you plan for more than just your retirement. Unlike Traditional IRAs, a Roth IRA doesn't require minimum distributions at age 70 ½. In fact, you can continue to contribute to a Roth as long as you or your spouse has earned income. This means a Roth IRA is also an excellent way to accumulate and control the future of your savings. Almost everyone is eligible to contribute to a Roth IRA.

The Education IRA

The Education Savings Account (ESA) is a great way to help save for a child’s education expenses! It allows after-tax contributions up to the annual limit to be made for the child until he or she reaches the age of 18. The earnings in the account are completely tax free if the money is used to pay qualified education expenses such as tuition, equipment, fees -- even room and board, anytime before the child reaches the age of 30.

Putting money into a Education Savings Account is easy and you don't have to be the child's parent to contribute. Friends and family members can make contributions to a Education Savings Account as long as the maximum contribution per child is not exceeded. Contributions can be made to the ESA at any time throughout the year until the child's 18th birthday.

Great News effective as of January 2002, the Education Savings Account will provide even greater savings opportunities!

• Annual Contribution will be increased from $500 per child to $2000
• The Education Savings will be expanded to include education expenses from kindergarten through 12th grade as well as higher education expenses.
• Contribution deadline will be the contributor’s tax filing deadline (not including extensions), generally April 15th
• More individuals will be eligible to make contributions
• Age restrictions will not apply for children with special needs