PRODUCTS

Defined Benefit Retirement Accounts

A defined benefit plan is the so-called "traditional" work-place pension. Benefits are paid in the form of an annuity. The benefit is based on a formula, typically involving salary and length of service. Most private-sector pensions are financed entirely by the Employer and are not "portable" from job to job. Chemical Bank clients and their actuaries who offer this type of retirement benefit receive investment management from our Investment Group, payment services for retirees, and federal tax withholding.

Defined Contribution Retirement Accounts

A defined contribution plan guarantees no ultimate benefit at all. Rather, it is financed with contributions from Employees and/or Employers. Participants generally control how the contributions are invested (within a limited range of options), which gives him or her more control over the funds, but also more risk. These benefits can be "rolled over" upon leaving a job. The most common and well-known type of plan is the 401(k) plan. There are others, including 403(b), Profit Sharing, and Money Purchase. Chemical Bank offers each of these and Participants enjoy a full range of investment choices where participant-direction is allowed.

Accounts for Self-Employed Individuals

Keogh plans are tax-deferred retirement accounts for self-employed workers or persons employed by unincorporated businesses. Chemical Bank responds to the needs of the self-employed individual with a range of possible plan types—from the simplicity of a Simplified Employee Pension (SEP) Plan all the way up the ladder to the comprehensiveness associated with a Single Participant Defined Benefit (DB) Pension Plan. Talk with one of our retirement professionals about your needs and Chemical Bank’s ability to meet them.

IRA Rollover Accounts

A Rollover Individual Retirement Account ( Rollover IRA) allows a person to “rollover” benefits from another IRA or qualified plan to another tax-deferred account where they have more control and flexibility over the management of assets. Direct rollovers are a tax-free way to move assets from an Employer based retirement plan to your own plan. Typically rollovers occur when one leaves a job or retires. Ask the human resource representative at work if your distribution is eligible for a direct rollover. They will have forms or be able to direct you where to obtain forms to make the distribution possible.

Your Rollover IRA at Chemical Bank will either be Self-Directed, Limited Option Managed, or Fully Managed, depending on the degree of investment management service desired.

Funeral Home Escrow Accounts

A Pre-Need Escrow Account is an account where Chemical Bank has agreed to serve as “Escrow Agent” and is responsible for the management and investment of funds received from the sale of a Prepaid Funeral and Cemetery Contract in accordance with the requirements of the Prepaid Funeral and Cemetery Sales Act (Act 21 of the Public Acts of 2004). The “Contract Seller” is a Funeral Home or Cemetery licensed to do business in Michigan and the “Contract Buyer” is the person or family member who has entered into the agreement for goods and services to be provided at death for one’s self or loved one. Funds are invested as specified in our agreement with the Funeral Home or Cemetery.

Retirement Trust

Retirement Trust is a trusteed IRA that was specifically crafted to solve the needs of IRA account holders while simplifying the job of planning for tax deferred assets. The trust prohibits spousal rollovers and accelerated beneficiary withdrawals. As an IRA-approved trust, it "stretches" distributions over the beneficiaries' lifetimes instead of the five-year period that applies to non-qualifying trusts. It allows the IRA account holder, rather than the beneficiary, to designate the ultimate recipient of the assets. The trust limits distributions to the required minimum distribution but permits the Trustee to distribute more at their discretion.