Offering IRAs

​(Savings& Loan Association) - We have offered IRA's for a long time, they make up approximately 15-20% of our deposits. We find them to be very sticky. We do allow them to transfer among CD terms without penalty, but will charge if they are taking the CD elsewhere.

The biggest issue seems to be a never ending need for training due to the complexities and tax implications. A pretty small number of front line staff members are able to open and sell them, and additional training on IRA's is a request we get every year.

We also have to remit withholdings semi-weekly to the IRS and there is year end reporting as well (both at the institution level and the customer level).

Overall, however, it's a good option and discussion for small business owners and our older customers who want a safe place to park retirement funds in retirement.

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Michael OBrien
Chief Financial Officer
First Federal Savings and Loan Association
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Original Message:
Sent: 04-24-2018 17:47
From: John Haglund
Subject: Offering IRAs

This may seem like an overly simple question, but we're a pretty simple institution, plus I'm new to the banking industry.  I also realize we're about 2 weeks late in terms of optimally timing our entering this market.

What is involved in offering IRAs?  What has your experience been in using IRA's as a tool for attracting new depositors?

Thanks in advance.

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John Haglund
Controller
Liberty Bank, Inc.
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