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Personal Banking

IRAs

Flexibility. Choices. Security. We know how important these features are to you when planning for retirement. We offer Traditional and Roth IRAs, as well as Coverdell ESAs, with a variety of investment options to choose from. You'll enjoy peace of mind with these FDIC-insured products.

All terms and conditions are subject to change. Full account disclosure, in accordance with the Truth in Savings Act, is available upon request.

IRA Types

Traditional IRA

  • To open, a depositor must be under age 70½ and earn compensation.
  • Annual contribution up to $5,500 or 100% of earned income, whichever is less.  Contribution must be coordinated with Roth IRA contributions to ensure limit is not exceeded.
  • Individuals 50 years of age and above may make additional contributions of $1,000 per year.
  • Contributions may be tax-deductible, depending upon the depositor's income and participation in an employer-sponsored retirement plan.
  • Earnings are tax-deferred until withdrawn; then, the entire distribution — earnings and contributions — is taxable.
  • Distributions before age 59½ are subject to IRS 10% premature distribution penalty, unless the IRA owner dies or becomes disabled, or the funds are used for one of the following purposes: a qualified first home purchase; higher education; eligible medical expenses exceeding 7.5% of adjusted gross income; or eligible medical insurance premiums by qualified unemployed individuals. Funds used for these purposes are taxable.
  • Distributions must begin by age 70½ to avoid IRS penalties.

Roth IRA

  • To open, a depositor must earn compensation. Modified adjustable gross income must be equal to or less than $129,000 for single taxpayers and $191,000 for married taxpayers filing jointly.
  • Individuals 50 years of age and above may make additional contributions of $1,000 per year.
  • Annual contribution up to $5,500 or 100% of earned income, whichever is less. Coordinate with Traditional IRA contributions to ensure limit is not exceeded.
  • Contributions are not tax-deductible.
  • Interest earnings are tax-free in most cases.
  • Distributions are tax-free as long as the IRA has been open for five years and one of the following applies: the withdrawals occur after age 59½; the IRA owner dies or becomes disabled; or, up to $10,000 of the withdrawal is used for a qualified first home purchase. Distributions that do not meet these requirements may be taxable and subject to IRS 10% premature distribution penalty.
  • Distributions may be used for qualified higher education expenses if the IRA has been open for five years. Earnings are taxable, but the distribution would not be subject to an IRS 10% premature distribution penalty.
  • No age requirement for beginning distributions.

Coverdell Education Savings Account (ESA)

  • Purpose is to pay for future qualified education expenses of a designated beneficiary under age 18.
  • Any individual may open a Coverdell ESA for a designated beneficiary.
  • Maximum contributions of $2,000/year.
  • Contributions are not tax-deductible.
  • Interest earnings are tax-free when used for beneficiary's education expenses.
  • Funds must be used within 30 days of attaining age 30 of the beneficiary; otherwise, Coverdell ESA funds become subject to income taxes and a 10% tax penalty.
  • Funds may be transferred to another designated beneficiary.

Spousal IRA

  • A working spouse may open an IRA for a spouse with no compensation.
  • Annual IRA contributions must be placed in two separate accounts---one for each spouse.
  • Maximum annual IRA contributions of $11,000 or 100% of the working spouse's compensation, whichever is less, with no more than $5,500 deposited into either account annually.
  • Individuals 50 years of age and above may make additional contributions of $1,000 per year.
  • A joint tax return must be filed.
  • May be established as a Traditional or Roth IRA.

IRA Investment Options

IRA Money Market Account

  • Minimum deposit of $25 to open the account and to make contributions.
  • Contributions may be automatically deducted from an ACNB Bank checking or statement savings account on a periodic basis.
  • Variable rate of interest earned with compounding and crediting on a quarterly basis.

Truth in Savings Disclosure

IRA CD

  • $500 minimum investment.
  • Investment maturity options of 6, 12, 18, 24, 30, 36, 48, and 60 months.
  • Interest compounded and credited quarterly.
  • Fixed rate of interest earned during CD term.
  • IRA CDs are automatically renewable and subject to a penalty for early withdrawal.

Truth in Savings Disclosure

IRA Flex Account

  • $500 minimum investment.
  • Subsequent minimum contributions of $25 may be made at any time.
  • Investment term of 18 months.
  • Variable rate of interest earned with compounding and crediting on a quarterly basis.
  • Automatically renewable and subject to a penalty for early withdrawal.

Truth in Savings Disclosure

IRA Transfers

IRA Rollover

  • IRA funds are withdrawn from another institution and redeposited into an IRA with ACNB Bank.
  • The rollover must be completed within 60 calendar days once funds have been received.
  • Limit of one rollover per 12-month period.
  • Not tax-deductible and not considered part of annual IRA contribution.

IRA Transfer

  • An IRA custodian is authorized to transfer funds directly to another financial services provider.
  • Not tax-deductible and not considered part of annual IRA contribution.

Qualified Retirement Plan to IRA Rollover

  • Funds are distributed from a qualified retirement plan or tax-sheltered annuity and paid directly to the owner. The owner must then complete the rollover by depositing the funds into an IRA.
  • The rollover must be completed within 60 calendar days once funds have been received.
  • No limit on the number of rollovers per year.
  • Subject to mandatory 20% federal income tax withholding at distribution.
  • Not tax-deductible and not considered part of annual IRA contribution.

Qualified Retirement Plan to IRA Direct Rollover

  • Funds from a qualified retirement plan or tax-sheltered annuity are transferred directly to an IRA at ACNB Bank.
  • Not subject to income tax withholding.
  • Not tax-deductible and not considered part of annual IRA contribution.

Member FDIC