Formerly known as First Trust Company of Onaga
Home > Services > Account Options

Account Options

Mainstar Trust provides specialized services allowing you to diversify and maximize your investment and retirement objectives. As an account holder with Mainstar Trust, you can gain more control of your future without the limitation of traditional account options.

Click here to review small business retirement plan options. 

 

 Traditional IRA

A traditional Individual Retirement Account (IRA) is a tax-advantaged savings account that is established and funded by an individual to accumulate retirement savings. A traditional IRA is generally funded through tax-deductible annual contributions and rollovers of pre-tax assets from other eligible retirement plans, such as 401(k) plans.
 
A traditional IRA is easy to establish and provides the account owner with flexibility and control over their contributions, investments, and distributions. Annual retirement savings contributions may be tax- deductible and investment earnings generally grow tax-deferred.

 Roth IRA

A Roth Individual Retirement Account (Roth IRA) is a tax-advantaged savings account that is established and funded by an individual to accumulate retirement savings. A Roth IRA is generally funded through after-tax annual contributions and rollovers from other eligible retirement plans, such as 401(k) plans.
 
A Roth IRA is easy to establish and provides the account owner with flexibility and control over their contributions, investments, and distributions. Roth IRAs can be established at any time, but contributions to the IRA are limited by earned income.

 Simplified Employee Pension Plan (SEP)

A Simplified Employee Pension (SEP) plan is a retirement savings plan adopted by a business that allows the business to make retirement savings contributions for its employees. Each eligible employee sets up a traditional Individual Retirement Account (IRA) to receive the employer SEP contributions.
 
A SEP plan is easy to establish, simple to administer, and inexpensive compared to other types of retirement plans, such as 401(k) plans. There are no compliance tests and employers are not required to file annual reports with the IRS.
 
Any type of employer, including a self-employed individual, can establish a SEP plan.

 Inherited IRA

An Inherited Individual Retirement Account (IRA) is a tax-advantaged savings account funded with retirement savings inherited from a deceased individual.
 
Federal tax laws require that an inherited account owner distribute the entire account within a certain amount of time.  An inherited IRA allows you to leave the assets in the IRA to grow tax-deferred for as long as the rules permit.  The length of time varies according to the beneficiary’s relationship with the original account owner (spouse, non-spouse, legal entity) and age of the original account owner.   Inherited IRAs cannot be combined with other personal IRAs.

Employee Benefit Plan Individually Directed Account (IDA)

An Individually Directed Account (IDA) may be established as part of a diversified investment strategy within an employer-sponsored retirement benefit plan.  The retirement plan allows employees to defer portions of their salaries to a tax-deferred account as a way to save for retirement. These contributions are done easily through monthly payroll deductions.

Defined benefit plans typically make all the investment decisions for the plan’s assets (trustee directed), while defined contribution plans frequently provide a small group of predetermined investment options for the participants to choose the allocation (participant directed).  Sometimes, these plans allow the participants to exercise independent control over the investment decisions (Individually Directed Account).  

IDAs allow plan participants to utilize alternative investment options not offered in many plans. 

 Automatic Rollover IRA

The Automatic Rollover provisions in a qualified retirement plan allow plan sponsors to transfer terminated participant accounts with small balances into IRAs.  This non-taxable distribution from the plan lets the plan sponsor clean up accounts that can cause administrative burdens and increase plan costs.  
 
Automatic rollovers typically occur when a plan participant account has less than $5,000 and the participant is no longer employed with the company.  The retirement plan sponsor will notify eligible participants about the pending automatic rollover and provide them with the appropriate instructions for accessing the IRA through the IRA custodian.   The participant (now IRA account owner) must make any further investment decisions or account changes through the IRA custodian.

 SIMPLE IRA

A Savings Incentive Match Plan for Employees (SIMPLE) IRA plan is a retirement savings plan adopted by a business that allows both employers and employees to make retirement savings contributions. Each eligible employee sets up a SIMPLE IRA to receive the plan contributions.
 A SIMPLE IRA plan is easy to establish, simple to administer, and inexpensive compared to other types of retirement plans, such as 401(k) plans. There are no compliance tests and employers are not required to file annual reports with the IRS. Employees share the responsibility of funding the plan with their employers.
Any employer, including a self-employed individual, can establish a SIMPLE IRA plan, but companies generally have 100 or fewer employees.

 Individual 401(k) Plan

An Individual 401(k) plan is a retirement savings plan adopted by a business that allows the business owner to make retirement savings contributions. Individual 401(k) plans are intended for businesses with no employees. The business may be structured as a sole proprietor, partnership, or corporation.
 
To establish an individual 401(k) plan, the employer must sign a written plan document approved by the IRS.  While the IRS does not offer free individual 401(k) Plan documents, most custodians and administrators provide pre-approved forms.
 
An Individual 401(k) plan allows business owners to make large annual contributions.
 

 Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-advantaged custodial account, similar to an IRA, which may be established by an individual who is covered by a high deductible health plan (HDHP). The main purpose of an HSA is to accumulate savings to pay for current and future medical expenses, but it can also supplement retirement savings.
 
Similar to an IRA, the HSA may accumulate money over time. HSA owners can take tax-free qualified distributions from the HSA even if they no longer participate in an HDHP. These characteristics make HSAs useful not only for paying current medical expenses but also for saving for medical expenses that may arise in retirement.