Piedmont Federal offers a wide variety of retirement savings accounts designed to help you save now so you can spend your retirement the way you want. Retirement accounts are available with fixed rates with terms of 6 months, 12 months, 18 months, 30 months and 48 months, and with a variable rate with a term of 18 months. Choose from two personal retirement savings accounts — with possible tax deductions or deferments with a traditional IRA, or tax-free earnings with a Roth IRA.

TRADITIONAL IRA
A no-fee retirement account that offers you the stability of fixed rates with guaranteed returns. Our Traditional IRAs allow almost anyone under age 70 1/2 to contribute up to $5,000 of earned income annually for you and/or your spouse. Married couples may contribute up to $5,000 each even if only one has earned income. It offers a tax deferral of the earnings until they are withdrawn and a possible tax deduction, dependent upon certain income limits and your participation in an employer-maintained retirement account. Individuals 50 and over have an opportunity to make additional "catch up" contributions of $1,000. And now our IRAs are FDIC insured up to $250,000, so you can consolidate all your IRAs into one account.

ROTH IRA
A nondeductible account that offers tax-free earnings on your contributions as long as you have reached age 59 1/2 and your account has been open at least five years before earnings are withdrawn. Contributions can be withdrawn at any time, tax free. You may contribute up to $5,000 of earned income for you and/or your spouse (certain income limitations could reduce or eliminate the contributions). As with the Traditional IRA, individuals 50 and over have an opportunity to make additional "catch up" contributions of $1,000 annually.

NOTE: It is important to remember that the annual contribution can be divided between the two types of IRAs as you choose.

SIMPLIFIED EMPLOYEE PENSION (SEP) PLAN
A SEP is a great plan for self-employed individuals and small companies. It is a retirement plan that allows any employer to contribute up to 25% (maximum of $46,000 for 2008; and $49,000 for 2009) of each employee's compensation into their own IRA. The maximum compensation limit is $230,000 in 2008 and $249,000 in 2009. These deposits provide a tax deduction for the employer, and the contributions do not affect the employee's participation in other types of IRAs.

COVERDELL EDUCATION SAVINGS ACCOUNT (CESA)
Formerly called the Education IRA, this account grows tax free as long as withdrawals go toward educational expenses. $2,000 can be contributed annually for each child into a CESA. Contributors may include corporations as well as individuals. Withdrawals may be used for certain elementary, secondary and post-secondary school expenses, such as tuition, books, computers, supplies, fees and others. Even better, a CESA can be established with as little as $100 and can be opened up until the tax-filing date, excluding extensions. The child must be under age 18 for contributions to be made on their behalf, and there are some limitations on income. Stop by a branch or call for complete details.

HEALTH SAVINGS ACCOUNT (HSA)
A Health Savings Account (HSA) is a tax-exempt account established exclusively for the purpose of paying qualified medical expenses for you, your spouse or your dependent(s). An HSA is established by you in much the same way that you set up an IRA. If you meet the eligibility requirements for an HSA, you, your employer, your family members or other individuals may contribute to your HSA. To meet the requirements, you must not be covered by a health plan or be covered by a high-deductible health plan (HDHP), and not enrolled in Medicare. All of your contributions are fully deductible on your federal income tax return. Earnings grow tax deferred, and distributions for qualified medical expenses are tax free. Contributions can be made anytime up to your tax-filing deadline, excluding extensions.