We offer Traditional IRAs, Roth IRAs, Health Savings Accounts (HSAs) and Education Savings Accounts (ESAs). Farmers State Bank of Trimont may not offer every type of service or account mentioned in these links.  We are happy to answer your questions, so if you're wondering if we offer something, or if you would like more information on our accounts or services, just ask us!

DISCLAIMER: Please keep in mind that we offer these links as a convenience. Farmers State Bank of Trimont does not control the content of or approve any website that is linked through this browser. Search results are not filtered or screened by the Bank or any of its agents, representatives, or service providers.  Users who search the Internet using this browser do so at their own risk and are responsible for the results. Farmers State Bank of Trimont is not responsible for the content, failure of products, or services advertised on the third-party website. Each third-party website may have a different privacy policy and may provide less security than Farmers State Bank of Trimont’s website.

Traditional IRA & Roth IRA

Information provided by the IRS. 

Visit for a chart describing the similarities and differences. 

Health Savings Account (HSA)

A Health Savings Account enables you to set aside money for future medical expenses for yourself, your spouse, and all dependents that you claim.  Qualified medical expenses include hospital bills, labs, prescriptions, dental visits, chiropractic care, and more.

According to the IRS:

A Health Savings Account (HSA) is a tax-exempt account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to qualify for an HSA.  An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual. Contributions, other than employer contributions, are deductible on the eligible individual’s return whether or not the individual itemizes deductions. Employer contributions aren’t included in income. Distributions from an HSA that are used to pay qualified medical expenses aren’t taxed.

Farmers State Bank of Trimont is a qualified HSA trustee. A few benefits of an HSA include:

  • Tax deduction for contributions made to your HSA
  • Contributions remain in your account until you use them
  • Interest earned on the HSA is tax-free

For more information, visit

Coverdell Education Savings Account (ESA)

According to the IRS:

A Coverdell education savings account (Coverdell ESA) is a trust or custodial account set up in the United States solely for paying qualified education expenses for the designated beneficiary of the account. This benefit applies not only to qualified higher education expenses, but also to qualified elementary and secondary education expenses. There are certain requirements to set up a Coverdell ESA:

  • When the account is established, the designated beneficiary must be under the age of 18 or be a special needs beneficiary.
  • The account must be designated as a Coverdell ESA when it is created.
  • The document creating and governing the account must be in writing, and it must meet certain requirements.


According to the IRS:

You may be able to contribute to a Coverdell ESA to finance the beneficiary's qualified education expenses. Contributions must be made in cash, and they're not deductible. Any individual whose modified adjusted gross income is under the limit set for a given tax year can make contributions. Organizations, such as corporations and trusts can also contribute regardless of their adjusted gross income. Contributors must contribute by the due date of their tax return (not including extensions). There's no limit to the number of accounts that can be established for a particular beneficiary; however, the total contribution to all accounts on behalf of a beneficiary in any year can't exceed $2,000.


According to the IRS:

In general, the designated beneficiary of a Coverdell ESA can receive tax-free distributions to pay qualified education expenses. The distributions are tax-free to the extent the amount of the distributions doesn't exceed the beneficiary's qualified education expenses. If a distribution exceeds the beneficiary's qualified education expenses, a portion of the earnings is taxable to the beneficiary. Amounts remaining in the account must be distributed when the designated beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary. Certain transfers to members of the beneficiary's family are permitted.

You should receive a Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530) from each of the Coverdell ESAs from which you received a distribution. Form 1099-Q should be made available to you by February 1, 2021.

Additional Information

According to the IRS:

For information on contributions and how to determine the part of any distribution that is taxable earnings, refer to Chapter 7 of Publication 970, Tax Benefits for Education.