February 2016

Inside this Issue:

A Community Bank 125 Years in the Making

On November 2, 1891 The Peoples State Bank opened its doors in Mazomanie, WI with $10,000 in invested capital. Over the course of more than a century the bank has seen a lot of history. It carried on through the Great Depression (with no loss to depositors), two world wars and a number of up and down economies. In that time there have been multiple mergers and acquisitions starting with the Arena State Bank in 1938, the Barneveld office in 1999, a name change to The Peoples Community Bank when it merged with Community Bank in 2005, and more recently with the acquisition of the Richland Center office of Anchor Bank in 2014. The bank remains locally owned with 225 area shareholders and continues to serve customers throughout Southwest Wisconsin.

While much has changed since our inception in 1891 we have remained steadfast in the principle that the customer comes first. We thank you for your business and look forward to continuing to serve you!

Coming Soon to a Smartphone Near You ... New Features in 2016

The start of a new year is always a great time to look within and evaluate if and how you are living up to your core values and goals. Here at the bank one of our top priorities is to create a customer experience that is second to none. That's why in 2016 we will be adding a number of features to our mobile and web experience including biometric scanning, Apple Pay, and Person-to-Person transfers via our mobile application.

Biometric Scanning: Using the front-facing camera on your smart phone you will be able to take a biometric scan of your iris, called your EyePrint ID, to gain access to your accounts. This feature takes compromised passwords out of the equation and, along with Fingerprint ID which is already available for iPhone users, adds another layer of protection to your accounts.

Apple Pay: Soon you will be able to add your Peoples Community Bank Credit Card to your mobile wallet. Apple Pay will enable you to store your credit card on your iPhone. This will allow you to simply scan your phone at checkout rather than pulling the physical card out of your wallet or purse.

Mobile P2P Transfers:  If you are signed up for online banking you already have access to Person-to-Person (P2P) transfers. Soon you will also be able to transfer funds through our mobile app. With the push of a few buttons you will be able to easily transfer funds to your roommate for your portion of the cable bill or to your son or daughter to cover an unexpected car problem that arose while they were away at college.

"Fill an Empty Table" Success

We had another successful Food Drive in 2015! With your help we were able to raise a total of $6,500 for pantries in Arena, Barneveld, Mazomanie, Richland Center, and Spring Green. Thank you all for your contributions this year and continued support of our communities.
$100 Gift Card Winners:

  • Mazomanie: Kathryn Smith-Pankow
  • Arena: Linda Fargo
  • Barneveld: Becky Aschliman
  • Plain: Shirley McCluskey
  • Richland Center: Jaleen Ambrose
  • Spring Green: Darlene Huffman

Roth IRAs.  What Are They and How Can They Benefit You?

A Roth IRA allows you to avoid future taxation of your retirement funds by making nondeductible contributions now. Contributions for the 2015 tax year can be made any time up to and including April 15, 2016.

Rules of the Roth IRA

Following is a partial summary of the rules for Roth IRAs.

  • Contributions to a Roth IRA are nondeductible regardless of your income level or participation in an employer-sponsored retirement plan.
  • Contributions are limited to $5,500 a year ($11,000 for couples) for the 2015 tax year. Investors aged 50 and older can make an additional $1,000 "catch up" contribution annually.
  • Income thresholds determine whether you are eligible for a Roth IRA. For 2015, single taxpayers with modified adjusted gross incomes (MAGIs) between $116,000 and $131,000, and married couples filing jointly with MAGIs between $183,000 and $193,000 are eligible for a partial contribution. Taxpayers earning less than these thresholds may make the full contribution. Those earning more are not eligible.
  • Qualified distributions are tax free. To qualify, you must have maintained the Roth IRA for five years and:
    • Be at least 59 years old.
    • Withdraw up to $10,000 (lifetime limit) and use the money for a first-time home purchase.
    • Become permanently disabled.

Conversion of a Traditional IRA to a Roth IRA

There are no longer any income restrictions on converting a traditional IRA to a Roth IRA. (Prior to 2010, taxpayers with MAGIs of more than $100,000 were prohibited from making the conversion.) If you have a traditional IRA and your contributions were not tax deductible, investment earnings and capital gains will be taxed but contributions will not. The withdrawal from your traditional IRA will count as income but will not affect your eligibility for the Roth conversion.

If you have a traditional IRA that has declined in value because of the recent stock market downturn, you may want to consider whether converting to a Roth IRA is appropriate given your situation. You may be paying taxes on a smaller amount than you would have several years ago.

Because IRA rules are complex, ask your financial advisor whether maintaining a Roth IRA, or converting a traditional IRA to a Roth account, is suitable given your situation.

Traditional IRA account owners should consider the tax ramifications and age & income restrictions with regards to executing a conversion from a Traditional IRA to a Roth IRA. The converted amount is generally subject to income taxation. The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

When it comes to investing your funds in a Roth IRA simply contact a personal banker in any of our six locations for an FDIC insured account or a representative in our Investment Center for deposit alternatives.

1st Annual Video Contest Winners

Last fall we asked classrooms throughout our communities to send us videos explaining how they could use $500 to improve their learning experience. We had so much fun reviewing each and every video submitted. We posted the videos to our Facebook page and asked people in the community to vote for their favorite to help us determine a winner. It is clear to us that the teachers and their schools care very much about improving the educational experience of their students. And equally as evident, based on the number of votes, is the fact that our communities care too! We decided to donate $500 to each classroom that submitted a video to the contest in hopes that it will help them continue to do great things for their students and the community. Thanks to all who participated!

2015 Video Contest $500 Recipients:

  • Barneveld Elementary 4th Grade - Michelle Kleimenhagen
  • WI Heights HS & MS Physical Education - KaSandra Gehrke
  • WI Heights High School Choir - Aniela Haas
  • St. John The Evangelist School - Lauren Haas
  • Spring Green Elementary Special Education - Emily Miller
  • Spring Green Elementary 1st Grade - Mary Hoof
  • Lone Rock Elementary - Kathy Rossing
  • Eagle Christian School - Kathy Allbaugh