Terre Haute Savings Bank

IRA/Health Savings

Terre Haute Savings Bank offers Traditional, Roth and SEP IRA accounts for your retirement needs along with a Coverdell Education Savings Account for your child’s educational needs.
Terre Haute Savings Bank also offers a Health Savings Account, an account used in conjunction with a high-deductible health insurance policy, that allows users to save money tax-free against medical expenses.

When opening an IRA with THSB, you have the option of opening a Certificate of Deposit or Savings Account.

Traditional IRA:

  • If you are under age 70½ for the entire tax year and have earned income, you are eligible to establish a traditional IRA.
  • Allows you to defer taxes on your earnings until they are withdrawn. Also, certain contributions are tax-deductible in the year they are made.
  • You can withdraw funds from your traditional IRA without incurring a 10% IRS premature-distribution penalty after you reach age 59 ½ (THSB may impose an early withdrawal penalty).
  • You can avoid the IRS 10% penalty before age 59 ½ if (THSB penalties would still apply):
    • You become disabled
    • The distributions are part of substantially equal periodic payments
    • Certain unreimbursed medical expenses
    • For health care insurance if you've been receiving unemployment compensation for at least 12 weeks.
    • Qualified higher education expenses
    • For a first-time home purchase
  • At age 70½, you must begin to take minimum required withdrawals or severe penalties will be imposed.

Roth IRA:

  • There is no minimum age to open or contribute to a Roth IRA as long as the individual has earned income and files a tax return.  If married, both qualify to contribute to a Roth IRA as long as one or both have earned income.
  • There is no maximum age to open or contribute to a Roth IRA.  Contributions may continue after the age of 70 ½ as long as the individual or his/her spouse has earned income and files a tax return.
  • Distributions from a regular Roth IRA can be taken at any time.  A distribution of principal (already-taxed basis) can be taken at any time without being taxed or penalized by the IRS (THSB may impose an early withdrawal penalty).
  • Required minimum distributions are not required by the Roth IRA owner.
  • Earnings are tax-free and IRS penalty-free after a five-year period has been met and the distribution is considered qualified.  The following are considered qualified distributions:
    • Distributions beginning at age 59 ½ or older
    • Death distributions to beneficiaries
    • Disability distributions to owner
    • First time homebuyer distribution to owner or qualifying descendants.


A Simplified Employee Pension (SEP) plan provides business owners with a simplified method to contribute toward their employees’ retirement as well as their own retirement savings.  Contributions are made to an Individual Retirement Account set up for each plan participant (a SEP-IRA).

A SEP-IRA account is a traditional IRA and follows the same investment, distribution and rollover rules as Traditional IRAs.

Coverdell Education Savings Account:
(Formerly known as an Education IRA)

  • $2,000.00 annual limit per child
  • Qualified distributions are tax-free and include:
    • Expenses incurred in connection with the enrollment or attendance of the beneficiary at a public, private or religious school providing elementary or secondary educations
    • Post-secondary tuition, fees, textbooks, supplies and equipment
    • Post-secondary room and board expenses
  • Virtually anyone can contribute, including corporations and other entities.
  • Contributions must stop at beneficiary’s 18th birthday, unless the beneficiary qualifies as special needs.
  • Funds must be distributed or rolled over by the beneficiary’s 30th birthday, except for special needs beneficiaries.

Health Savings Account (HSA Checking Account)

  • No minimum amount required to open this account.
  • No minimum balance requirement on this account.
  • No monthly maintenance service charge assessed on this account.
  • No Overdraft Protection or Overdraft Privilege available with this account.
  • Interest is compounded daily and credited monthly.
  • Interest is paid on two tiered levels:  less than $2,500.00 and $2,500.00 or more.
  • A debit card will be provided for this account.
  • Pre-selected checks will be issued should the customer so desire.
  • Account holder will have access to online banking (account view only).

Please contact us for more information regarding our IRA or Health Savings Accounts.