Citizens National Bank, IRA's

Roth IRA's • Education IRA's • Traditional IRA's • CD's

You may make annual contributions as large as $5,000 and $6,000 if you are >50 for 2008. Unlike a traditional IRA, Roth IRAs permit continuing contributions after age 70 1/2 and there is no requirement to begin withdrawal at age 70 1/2. Retirement savers may have both a Traditional IRA and a Roth IRA, but combined contributions in any tax year are limited to a total of $5,000 and $6,000 if you are >50 for 2008.

Contributions to Roth IRAs are nondeductible from federal income tax. But, as with Traditional IRA accounts, earnings accumulate tax-deferred. Even more exciting, once the account has been open for five successive tax years, owners may take tax-free distributions if they meet any of the following criteria:

They are at least age 59 1/2.

They become disabled.

They use the funds toward a first-time home purchase.

Their death results in a distribution to the account beneficiary.

Education IRAs are designed to assist those saving for post-high school educational expenses. As with the Roth IRA, contributions are nondeductible. Earnings are tax-deferred, and distributions are tax-free if used to pay for the account beneficiary's tuition and qualified educational expenses at an eligible college or vocational school. Any distributions not used for qualified education expenses are not only taxable, but subject to a 10% penalty, as well.

Contributions are limited to $2,000 per child annually and must stop when the account beneficiary reaches age 18. All funds must be distributed by age 30 or rolled over to a new Education IRA for the benefit of a qualified family member.

Anyone - whether related to the designated beneficiary or not - may contribute the maximum of $2,000 per child to an Education IRA.

Act now for a more secure future
Through these important legislative changes, you have more opportunities than ever when it comes to saving for a bright future. Don't put it off. Choose the type of account that is best for you and open your IRA with us today.

Contributions for traditional IRAs are the same as for Roth IRAs. Contributions are deductible from Federal Income tax if within income guidelines. Check with your tax accountant.

CDARS

Citizens offers a wide range of maturities on our C.D.'s. Interest rates vary with the amount of the deposit and initial rates are subject to change daily. Check with our Customer Service Representatives for current rates and yields for your deposit. Penalty on early withdrawal. Interest may be 1) added back to the balance of your certificate (this will increase your effective rate of interest), 2) deposited to another account at Citizens. Interest is calculated daily and paid or compounded according to the terms of the certificate.*

Certificates of Deposit

* Any questions regarding services, fees or charges are welcomed and will be promptly answered. Citizens National Bank retains the right to change or modify fees and charges as deemed necessary. All information provided is deemed reliable but is not guaranteed and should be independently verified. Please contact our Customer Service Representatives for additional account terms and conditions.

Insurance and Investment products are not FDIC insured, are not guaranteed by the Bank and are subject to investment risk with possible loss of principal.