Home Federal Bank

Personal Banking

Personal Banking

Health Savings Accounts (HSA) & Individual Retirement Accounts (IRA) 

Health Savings Account (HSA)

Home Federal Bank is now offering Health Savings Accounts! A Health Savings Account is a tax-exempt account that works with your high deductible healthcare plan and is established exclusively for the purpose of paying for qualified medical expenses. Some of the features of this account are convenient access to funds with the HSA debit card, online bill pay, and online statements. This account will allow more flexibility to fit your medical needs. Best of all, this HSA account will carry over from year to year… meaning you will not lose funds if they are not used!
 

Individual Retirement Accounts (IRA)

An Individual Retirement Account gives you the benefits of tax-deferred interest. Even with tax law changes, an IRA is a great way to save for retirement. Over the years this can add up to plenty of savings for you!

If you were eligible for an IRA before tax reform, you still are. Tax reform did NOT affect your eligibility for contributions (only the deductibility of those contributions.) If you are eligible you can look forward to the retirement benefits of an IRA.

Home Federal Bank can help you choose the best IRA plan to meet your retirement needs. We offer IRA investments in 12 month to 5 year term CDs with minimum opening deposits as low as $25. In addition to the Traditional IRA, Home Federal Bank offers ROTH IRA, Coverdell Education Savings Account, and Simplified Employee Pension Plan.

IRA PLAN TYPE DESCRIPTION ANNUAL CONTRIBUTION LIMITS DEDUCTIBILITY
Traditional IRA Deductible or nondeductible.
Earns tax-deferred income.
$5,500/per person under age 50
$6,500/per person age 50 or older.
Contributions may be deductible if not covered by a Qualified Plan, or if covered but below income phase out levels.
Roth IRA Nondeductible. Earns tax-free income if established for at least 5 Years and meets qualified distributions:
  • over 59 1/2
  • death
  • disability
  • first-time homebuyer
  • exception
$5,500/per person under age 50
$6,500/per person age 50 or older (less any contributions made to a Traditional IRA).

*Contribution is phased out if income is over threshold limits.
Contributions to a Roth IRA are never deductible.
Coverdell Education Savings Account Nondeductible.
Must be for a minor under age 18 and used for K-12 and post-secondary education. Earns tax-free income if used for a qualified education expense.
$2000/per child per year. This contribution does not affect the Regular or Roth contribution.

*Contribution is phased out if MAGI income is over threshold limits.
 Coverdell contributions are never deductible.

Home Federal Bank does not offer tax advice to our customers. Please ask your tax preparer about income limits and if your IRA contributions are tax deductable.

See a Personal Banker about all your Individual Retirement Account questions.

Take advantage of our retirement calculators!

Get more information with our Account Request Form

Visit one of our locations in Tennessee and Kentucky to learn more about Individual Retirement Accounts (IRAs) or our Health Savings Account (HSA). Our personal bankers can help you select the right IRA for you. Wherever you are, wherever you go, Home Federal Bank is Always Within Reach®.

 

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