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Services range from fiduciary risk management to investment menus

Offering retirement benefits to company employees comes with a wide range of responsibilities. At First American Bank, we provide the fiduciary guidance you need as we help you to develop and implement prudent policies and procedures to manage these responsibilities.

  • If desired, First American Bank will be appointed as plan Trustee. First American Bank, as Trustee, is authorized to employ all of the powers and exercise all of the obligations that are stated in the Plan or separate Trust Agreement.
  • This includes all functions associated with discretionary investment powers, investment duties, and trust administration.
Investment Advisory Services
  • Our full range of Qualified Retirement Plan services includes: investment consulting and advice; fiduciary assistance; provider oversight; fee benchmarking; plan design consulting; and participant education.
  • Our Retirement Plan professionals, consultants and investment advisors assist your company with the construction of retirement plan investment menus, collaborate on a plan design to meet current organization needs and objectives, and manage the complexities of your plan.
  • We act as a 3(21) or 3(38) Investment Co-Fiduciary to guide you through the selection, implementation and monitoring process to help you meet your fiduciary obligations.
  • We will assist in the review and selection of Qualified Default Investment Alternatives for your plan.
  • First American Bank will assist you with your ongoing duty to review your current plan providers, collaborate with alternative provider searches, provide transition assistance and help document the process.
404(c) Investment Menu
  • First American Bank offers a broad range of funds for employee benefit plans, including approved mutual funds, Collective Trust Funds, and Target-Risk model portfolios to help you meet the requirements of ERISA Section 404(c).
  • Participant investment options are evaluated on an ongoing basis. When prudent to do so, based on the Plan’s investment policy, we will vet and recommend alternatives.
First American Bank is a full-service bank with locations in Illinois, Wisconsin and Florida.

Not FDIC Insured | Not Bank Guaranteed | May Lose Value | Not Guaranteed by Any Government Agency | Not a Bank Deposit
The IRS requires 20% withholding on all qualified plan distributions eligible for rollover to an IRA or another qualified plan. You will report the distribution as ordinary income on your personal tax return. Depending on your personal tax bracket, you may be required to pay additional taxes on the distribution or you may be entitled to a refund. If the additional amount of tax due is substantial, you may be required to make estimated tax payments. You may also be required to pay state income taxes. You should consult your personal tax advisor before making decisions regarding your distribution.

Prior to 2020, you were required to start taking Required Minimum Distributions (RMDs) by April 1 of the year following the year in which you attained age 70 ½. That rule still applies if you attained age 70½ by the end of 2019. Once you are required to begin taking RMDs, you must continue. For 2020, the SECURE Act increased the age to begin RMDs to age 72 and then subsequently with the passing of SECURE Act 2.0 beginning in 2023, the age has been raised again. The schedule below outlines at what age you must begin taking RMDs.

Date of birth before 7/1/1949, RMD starts at age 70 ½. Date of birth 7/1/1949 to 12/31/1950, RMD starts at age 72. Date of birth 1/1/1951 to 12/31/1959, RMD starts at age 73. After 12/31/1958, RMD starts at age 75.

The same April 1 deadline applies. Thereafter, you must take RMDs annually on or before December 31. Note, two required distributions will be issued your first year if you wait until the period January 1 to April 1 to begin your RMDs. You may avoid two taxable distributions in the first year by taking your first withdrawal on or before December 31 of the year in which you attain the applicable age as shown above.

However, if you are still working, you are not required to begin RMDs from your employer sponsored plan until April 1 of the year following the year in which you terminate employment. This exception does not apply if you own more than 5% of the employer, nor does it apply to IRAs.

The annual deferral may not exceed the lesser of:

a. $23,000 for 2024;

b. the maximum deferral amount allowed under the terms of the plan; or

c. the amount that allows the plan to meet the required nondiscrimination tests.

In addition, if you attain age 50 or older by December 31, you may defer an additional $7,500 catch up contribution.
If a plan accepts rollover distributions from other qualified plans, it may also allow for employees to make a rollover contribution before they meet the plan's minimum age and service eligibility requirements. These employees would be considered 'limited participants' in the plan.
Yes, the additional 10% tax applies, with limited exceptions. Exceptions include distributions that are made to a participant after termination of employment after attainment of age 55, distributions that are attributable to an employee being disabled, and distributions that are made to cover deductible medical expenses.

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