Individual Retirement Accounts

Types of IRAs

Traditional IRA

Put more into retirement and less into taxes with an Individual Retirement Account. Both you and your spouse may potentially contribute up to $5,000 into an IRA if you or your spouse has earned income. Additional catch up contributions can be made by individuals over fifty years of age.

ROTH IRA

The Roth IRA allows tax-free "qualified withdrawals." The required minimum distribution rules do not apply with the Roth IRA which allows this IRA to also serve as an estate planning tool. You can convert your existing regular IRA to a Roth IRA subject to full taxation.

Education IRAs

Up to $2000 per child per year may be put into an Education IRA. Distributions used for qualified education expenses will be tax free. They are now known as Coverdell-Education Savings accounts.

Your IRA Options

Variable Rate IRA Certificate of Deposit
	How we determine the interest rate: Your interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on your account. We may change the interest rate at any time. This account will mature in 1 year. The annual percentage yield assumes interest will remain on deposit until maturity. See our rate sheet for more details.
	Compounding and Crediting: Interest will be compounded quarterly. Interest will be credited quarterly and at maturity.
	Your minimum deposit, time and balance requirements: To open this account, you must deposit at least $50.00.
	How we compute the balance to determine your interest: We use the daily balance method to calculate the interest on your account. The daily balance method applies a daily periodic rate to the principal in the account each day.
	Accrual of Interest on deposits other than cash: Interest begins to accrue on the business day you deposit noncash items (for example, checks).
	Transaction Limitations: You may make additional deposits into your account. The minimum amount you may deposit at any time is $25.00. You may not make withdrawals of principal from your account until the maturity date. Interest may be withdrawn quarterly and at maturity.
	Early Withdrawal Penalties: We will impose a penalty if you withdraw any of the principal before the maturity date. The early withdrawal penalty may invade principal. The penalty imposed will equal 60 days' interest. Other early withdrawal penalties & rules on deposits and withdrawals are imposed on the IRA under the Internal Revenue Code. Those penalties and rules are disclosed in the IRA documents provided to you by us.
	What happens at maturity: Unless we give you prior written notice, this account will renew automatically at maturity. You will have 10 calendar days after the maturity date to withdraw funds without penalty.
	Other fees may be charged on this account.

Fixed Rate IRA Certificate of Deposit
	Fixed Rate Account : The interest rate and annual percentage yield on this account is fixed. You will be paid this rate until maturity. This account will mature in 2 years. The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings. See our rate sheet for more details.
	Compounding and Crediting: Interest will be compounded annually. Interest will be credited annually and at maturity.
	Your minimum deposit, time and balance requirements: There is no minimum deposit required to open the account.
	How we compute the balance to determine your interest: We use the daily balance method to calculate the interest on your account. The daily balance method applies a daily periodic rate to the principal in the account each day.
	Accrual of Interest on deposits other than cash: Interest begins to accrue on the business day you deposit noncash items (for example, checks).
	Transaction Limitations: You may not make deposits into your account. You may not make withdrawals of principal from your account until the maturity date. Interest may be withdrawn annually and at maturity.
	Early Withdrawal Penalties: We will impose a penalty if you withdraw any of the principal before the maturity date. The early withdrawal penalty may invade principal. The penalty imposed will equal 180 days' interest. Other early withdrawal penalties & rules on deposits and withdrawals are imposed on the IRA under the Internal Revenue Code. Those penalties and rules are disclosed in the IRA documents provided to you by us.
	What happens at maturity: Unless we give you prior written notice, this account will renew automatically at maturity. You will have 10 calendar days after the maturity date to withdraw funds without penalty.
	Other fees may be charged on this account.

Your IRA Contacts:

Debbie Bennett (920) 623-4000 Ext. 8404
Peggy Schleicher (920) 623-4000 Ext. 8403
Pat Felder (920) 484-6505 Ext. 2601
William Medema (920) 348-5141 Ext. 2502
Beverly Weinheimer (920) 386-2100 Ext. 2403

Farmers & Merchants Union Bank is participating in the FDIC's Transaction Account Guarantee Program. All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules. The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes interest on Lawyers Trust Accounts (“IOLTAs”). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts. For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.