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Hills Bank and Trust Company

HBT Connect eNewsletter from Hills Bank and Trust Company

  HBT Connect  
Volume 3, Issue 2: March - April 2013  

  Traveling Abroad? View these tips for your upcoming trip.

Don’t let fraud, pickpockets, identity theft, or a lost purse or wallet ruin your next vacation. The following tips will help protect your wallet, valuables, identity, and financial information while traveling.

Make Copies of Important Financial Information:
Make copies of all the cards you will have on your trip, your passport data page, and travel itinerary. Leave copies of everything with a trusted friend or family member while you are gone.

Take Several Forms of Payment:
It’s a good idea, especially when traveling internationally, to take several forms of payment in case one is not accepted, is lost or stolen, or is deactivated while you are out of the country. Pack a backup card and secure it in a hotel safe, so if one is lost or stolen, you will have a backup to pay for hotel rooms and other large purchases.

Use Credit Cards for Major Purchases:
Many credit cards have a zero-liability policy, meaning you won’t be charged for unauthorized purchases if your card is lost or stolen. Alert your credit card company of a lost or stolen card as soon as possible.

Alert Hills Bank and Credit Card Companies about your Travel Plans:
Remember to alert Hills Bank and your credit card company about your travels. If you don't remember to do this, we may think a thief—not you—is making purchases, and we could freeze your card. This is especially imperative for travel abroad.

Please remember the hillsbank.com Help Center has all the phone numbers you need in case your cards are lost or stolen. For any questions regarding your debit and credit cards, contact Hills Bank at 319-654-8100 (Cedar Rapids), 319-679-5500 (Iowa City), toll free at 1-800-445-5725, or email hillsbank@hillsbank.com.


IRA Rollovers - Consolidate Your Assets
By Dale R. Farland, Trust Officer

If you are making a career move, getting ready to retire, or have already retired, you should consider consolidating your retirement assets into one place. Why roll your funds into one IRA? Contrary to your mother telling you to “not put all your eggs into one basket,” it makes sense.

By combining your retirement plans and other IRAs into one IRA, you streamline your recordkeeping and can better manage your retirement assets. With a single account, it will be easier to see the big picture and guard against unwanted investment overlap or incorrect asset allocation. Reviewing your portfolio’s asset allocation and periodically rebalancing your portfolio will also be easier. The decisions as to how to best invest for meeting your retirement goals can be better determined with a consolidated IRA.

You will receive one account statement instead of several, saving you time and effort. What is more significant, with a single account, it only takes one phone call to one place to have your questions answered or to meet with your advisors to review your personal situation. Finally, when it is time to take your Required Minimum Distribution (RMD), you will have a better understanding of the total amount for the required withdrawal.

Tax Deferral is an Important Benefit
By rolling over your retirement plan and postponing income taxes, you will have more money available for investment. You will continue to benefit from potential tax-deferred growth on your rollover IRA investments. In addition, you will pay income taxes only when you withdraw funds from your IRA. Over several years, the benefits of continuing tax deferral can make a big difference.

You Can Accomplish a Tax-Deferred Rollover in Two Ways:
One choice is to arrange for a trustee-to-trustee transfer (“a direct rollover”). A direct rollover is generally the least complicated choice. You simply inform the administrator of your retirement plan that you want your funds transferred into the IRA you have established. In addition to simplicity, this approach offers another significant advantage: tax will not be withheld from the distributions which are rolled over in a direct trustee-to-trustee transfer.

A second option is to receive the plan distribution and roll it over to an IRA within 60 days (“delayed rollover”). If you decide to take your distribution directly, without rolling it over through a direct trustee-to-trustee transfer, you have 60 days to rollover the funds into an IRA. There are disadvantages to this method. The plan administrator will withhold 20% of the distribution for federal income taxes. This will not be a problem as long as you replace the 20% of the funds from another source and deposit the full amount of the taxable distribution in a rollover IRA within 60 days. Remember, to avoid paying income taxes on the 20%, you need to replace that amount from other sources.

Hills Bank Trust and Wealth Management Can Guide You Through Retirement
Whether you are looking towards retirement or are already retired, the funds in your retirement plan and IRA are a very important financial resource to you. Our Trust and Wealth Management Department understands this and can assist you in finding the best retirement lifestyle solutions.

Investment products are not a deposit, not FDIC insured, not insured by any federal government agency, carry no bank guarantee, and may go down in value.


Ooops, I've Made a Mistake on my Tax Return!

If you suddenly discover a mistake on the income-tax return you just filed, don’t panic. You can correct it. And you’re probably better off correcting it yourself rather than waiting to see if the IRS discovers the error.

Easy Fix
The IRS has a special form to correct mistakes — Form 1040X. List the amount you originally reported in the first column, changes to the amounts in the second column, and the corrected figures in the third.

If the error is the result of a corrected W-2 or 1099, attach a copy of that form to your 1040X. And if the error is due to a missed deduction, attach a copy of the receipt to your 1040X. The more documentation you provide, the better.

Don’t Delay
Generally, for a credit or refund, you must file Form 1040X within three years from the date you filed the original return or within two years of the date you paid the tax, whichever is later.


Hills Bank Customer Protection Center

Hills Bank Customer ProtectionHills Bank has created the Customer Protection Center to provide educational information and ways to protect your accounts and personal information. Learn more about:

  • Security Alerts
  • Online Security
  • Mobile Security
  • Social Media Security
  • Identity Theft
  • Ways to protect your ATM, debit, and credit cards
  • Additional ways to protect your identity
  • And direct links to more online resources

Visit hillsbank.com’s Customer Protection Center to learn how to protect yourself from fraud.


Celebrate Spring and Agriculture

Hills Bank is celebrating spring and our agricultural heritage by hatching baby chicks. The hatching of our chicks represents the anticipation of new life and all of the good things that agriculture production provides us. Life’s new beginnings each spring portray Mother Nature at her best.

The eggs are currently incubating and set to hatch the week of March 18th. Stop by your local Hills Bank location now to view a unique agriculture display and choose the numbered egg you predict will hatch first.
If yours is the first to hatch, you could be a LUCKY
prize winner!

No purchase or account required to enter or win. Need not be present to win.

Barnyard Day at Hills Bank

Hills Bank invites you and your family to Barnyard Day
at our Coralville, Cedar Rapids Blairs Ferry Road, and Mount Vernon locations. You'll see many different
animals and maybe even pet a few!

Hills Bank Coralville
Saturday, March 16th • 9:00 - 11:00 am

Hills Bank Cedar Rapids Blairs Ferry Road
Saturday, March 23rd • 9:00 - 11:00 am

Hills Bank Mount Vernon
Saturday, March 23rd • 9:00 - 11:00 am


Want $20 when you open a new Hills Bank account? Get your $20 opening deposit coupon!
  Invest in your future and open an IRA today!


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We are always trying to improve our eNewsletter and would love to hear from you!

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