Part of working hard is, of course, to provide for the present day — but also to provide for the future. Your retirement is largely decided by the decisions and actions you take today.

We offer traditional, Roth, and self-directed retirement plans, as well as education savings accounts, to help meet your specific goals. Each plan can also provide major tax advantages.* Make your hard work pay off with a well-deserved IRA.

Summary
  • Competitive interest above standard savings rates for balances of $500 or more
  • Traditional IRA, Roth IRA, and Coverdell ESA options
  • Self-directed IRAs available
  • No setup fees
  • No monthly or annual maintenance fees
  • $5,000 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Contributions may be tax deductible*
  • $500 minimum deposit to open

Self Directed IRA option also available. Use funds to purchase and hold F&M Bancorp stock.

*Consult a tax advisor.

Traditional vs. Roth IRA

There are advantages to both Traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A Traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 ½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70 ½  

Roth IRA 

  • Income limits to be eligible to open Roth IRA***
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal*
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals on interest can begin at age 59 ½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

*Subject to some minimal conditions. Consult a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***Consult a tax advisor.