SouthStar Bank, Author at SouthStar Bank, S.S.B.

by SouthStar BankJune 17, 2025

5 Benefits of a Self-Directed IRA (SDIRA)

5 Benefits of Using a Self-Directed IRA When planning for retirement, most consumers assume that traditional options, such as 401(k)s, IRAs, or employer-sponsored plans, which typically include mutual funds and stocks, are the only available options. However, many people long to have more control over their retirement and are unaware of the other options available. Enter the Self-Directed IRA (SDIRA) — a powerful yet often overlooked retirement account that puts the customer in control of their investments. Understanding the benefits of using a self-directed IRA will help an investor optimize their retirement planning. Benefits of Self-Directed IRAs: Expanded Investment Options Unlike traditional IRAs, SDIRAs allow account holders to invest in a variety of investment options, including: Real estate (residential, commercial, raw land) Precious metals (gold, silver, etc.) Tax Liens Private Equity/Companies Having investment control opens up opportunities for higher returns, better diversification, and investment in areas where investors have personal knowledge and expertise. Diversification Outside of the Stock Market Relying solely on the stock market can expose your retirement to volatility amidst economic downturns. With a SDIRA, investors can hedge against inflation and market risk by investing in hard assets or alternative markets. For instance, real estate or private lending can provide stable, passive income streams even when the stock market is down. Tax Advantages Just like traditional and Roth IRAs, SDIRAs offer tax-deferred growth depending on the account type: Traditional SDIRA: Contributions are tax-deductible, and growth is tax-deferred until withdrawal. Roth SDIRA: Account holders make contributions after tax, but qualified withdrawals are tax-free. Greater Control and Flexibility With an SDIRA, the account holder has complete control over their investment. They decide which assets to invest in and when to make a move, which is especially attractive to experienced investors or entrepreneurs who want more input in the use of their retirement funds. Potential for Higher Returns By investing in assets, the account holder will typically invest in options that they have a strong understanding of and feel confident will be a beneficial investment. One commonly chosen investment is real estate used as rental properties. Building a portfolio centered around unique investments may generate higher returns than a traditional stock-based portfolio. While these investments may carry higher risk, they also offer the potential for substantial rewards. Before Opening a SDIRA While SDIRAs offer numerous advantages, they also include additional responsibilities for the investor. For example, account holders must avoid prohibited transactions (such as self-dealing or using SDIRA assets for personal benefit) and follow IRS rules carefully. It’s critical to work with a qualified custodian, such as SouthStar Bank, and consult with financial or legal professionals who have experience working with SDIRAs. In Conclusion A Self-Directed IRA isn’t for everyone, but for investors looking to diversify and take control of their retirement planning, it could be a top account option. Whether you’re a real estate investor or simply looking to escape market dependency, an SDIRA gives you the flexibility to build a retirement portfolio on your terms. Interested in starting your […]

General Education

by SouthStar BankJune 16, 2025

Secure Documents: What to Keep and How Long

Over the years, the number of essential documents in your possession often stacks up. The accumulation of documents can make it increasingly challenging to determine which documents should be kept secure and for how long. Outlined below is a list of several documents that are vital to keep safe and secure, along with a rough timeline for their retention. Forever Documents: Birth Certificates Marriage and Divorce Records Social Security Cards Loan Payoff Statements Retirement/Pension Records Estate Documents Military Service Records Death Certificates Loan Documents Loan Statements and Documents should be kept until the loan is paid off, at which point you should keep the Loan Payoff Statement Vehicle Titles Titles should be held for as long as you own the vehicle Home Improvement Purchase Receipts Proof of all home improvements should be kept until you sell the home Investment Statements Three to Seven Years: Tax Records Medical Bills One Year: Credit Card Statements While keeping physical and/or original copies of these documents is beneficial, it is also wise to scan important documents and store them digitally on a secure device. For monthly, quarterly, or annual statements, options are often made available for electronic statement delivery. This can expedite the record-keeping process and prevent potential fraud in the event that one of your statements is lost or stolen. Always remember to keep your accounts updated in the event you change your email, phone number, home address, etc., to ensure no documents are delivered to the wrong place. Source: The Washington Post

Employee News

by SouthStar BankJune 11, 2025

Welcome Hilary Hernandez

Hilary Hernandez, Assistant Vice President & Branch Manager | SouthStar Bank Gonzales Hilary Hernandez has joined the SouthStar Bank Gonzales team as an Assistant Vice President and Branch Manager. Hilary is well-versed in banking, with nearly two decades of experience in the industry, including a year spent previously with SouthStar Bank. In her role as Branch Manager, Hilary is excited to bring her passion for customer service alongside her hunger to continue learning new things. She looks forward to instituting her inclusive style of leadership and helping her team learn and develop. Outside of work, Hilary enjoys embarking on beach vacations, shopping, hosting backyard BBQs, and having movie nights with her kiddos! One of her crowning achievements is her career in banking, as well as her journey and development throughout her 18 years in the industry. Welcome to the team, Hilary!

Retirement, Savings

by SouthStar BankJune 5, 2025

5 Benefits of a Health Savings Account (HSA)

When it comes to managing healthcare expenses and planning for the future, a Health Savings Account (HSA) offers more than just a way to pay for doctor visits. SouthStar Bank is proud to offer HSAs to our customers, as the benefits of a health savings account include several practical and financial advantages that can have a big impact on your overall financial wellness. If you’re enrolled in a high-deductible health plan, here are five major benefits of opening and contributing to an HSA. Triple Tax Advantage One of the most compelling reasons to contribute to an HSA is the triple tax benefit. First, contributions are tax-deductible (or pre-tax if made through payroll), which lowers your taxable income. Second, any interest or investment gains in the account grow tax-free. Third, withdrawals are tax-free when used for qualified medical expenses. This rare combination makes HSAs one of the most tax-efficient savings tools available—more advantageous than even traditional retirement accounts like IRAs or 401(k)s when it comes to medical spending. Funds Roll Over Year After Year An HSA allows your unused funds to roll over indefinitely. You don’t have to worry about spending the money by the end of the year. Instead, you can let your balance grow year after year, building a cushion for future healthcare costs. This feature makes HSAs ideal not only for short-term medical expenses but also for long-term financial planning. You Own the Account An HSA is yours—even if you change jobs, switch health plans, or retire. It’s not tied to your employer, which means you keep the account and the funds no matter where life takes you. That’s different from some other workplace benefits that may be lost or changed when you leave a job. This portability gives you greater control and peace of mind, knowing your healthcare savings remain intact and accessible. Use Funds for a Wide Range of Expenses You can use HSA funds to pay for a long list of qualified medical expenses. This includes doctor visits, prescriptions, dental and vision care, and even certain over-the-counter medications. You can also use it to cover expenses for your spouse and dependents—even if they’re not on your health plan. After age 65, HSA account holders can use funds for any expense—medical or not—without penalty. You’ll just pay regular income tax on non-medical withdrawals, similar to a traditional IRA or 401(k). Flexible Contribution Options HSAs are simple to fund and manage. You can contribute through payroll deductions (if offered by your employer), make direct deposits from your bank account, or even contribute by check. You can make contributions at any time during the year, up to the IRS annual limits. For 2025, individuals can contribute up to $4,300 and families up to $8,550. This flexibility helps you tailor your contributions to fit your budget and financial goals, whether you’re planning for upcoming medical expenses or saving for the future. Health Savings Accounts are more than just a way to pay for your next doctor’s visit, they’re […]

Important Notice

by SouthStar BankJune 4, 2025

Operations Update 6.7.25

IMPORTANT OPERATIONS NOTICE To enhance our systems and better serve you, we will be upgrading our data center over the weekend. This necessary conversion will improve long-term reliability, security, and performance. During the transition, our Online Banking will be in inquiry-only mode with transactions history only appearing for transactions prior to Friday, June 6th at 5:00pm. During this time, debit card limits may also be impacted. Zelle®, money transfers, and mobile deposits—will not be accessible. If you currently use your debit card for person-to-person payments apps those funds will be unavailable during this period. The systems will be restored on Monday, June 9, 2025. We encourage you to plan ahead and appreciate your understanding as we work to bring you an even better banking experience.

IRA Accounts

by SouthStar BankMay 14, 2025

IRA Withdrawal Rules: What to Know Before You Retire

Planning for retirement involves more than just saving money; it’s also about understanding how and when to access your retirement funds. SouthStar Bank proudly offers Individual Retirement Accounts (IRAs) to support your retirement goals. These accounts provide unique benefits targeted at putting you in a great position to retire when your career comes to a close. While these accounts offer several advantages, your IRA will also have withdrawal restrictions. Understanding IRA withdrawal rules and regulations is essential for avoiding penalties and maximizing the benefits of your IRA. Before diving into the IRA withdrawal rules, it’s essential to review the two primary types of IRAs: Traditional IRAs and Roth IRAs. The rules for withdrawing funds differ depending on which one you have. Traditional IRA: Contributions are typically tax-deductible when you make them, but withdrawals are taxed as ordinary income. Roth IRA: Contributions are made with after-tax dollars, so you won’t pay taxes on withdrawals if certain conditions are met. A crucial milestone for both Traditional and Roth IRAs is reaching the age of 59½. Once you reach this age, you can withdraw from your IRA without facing the IRS’s 10% early withdrawal penalty. However, some specific nuances depend on the type of IRA. Traditional IRA Withdrawal Rules As mentioned previously, contributions made to Traditional IRAs are tax-deductible. This means that withdrawals made after the age of 59½ won’t be penalized but will be subject to income tax unless you’ve made non-deductible contributions to your account. The IRS mandates that you start taking Required Minimum Distributions (RMDs) from your Traditional IRA at age 73. Roth IRA Withdrawal Rules For Roth IRAs, the rules are a bit more flexible. You can withdraw your contributions at any time (after the age of 59½), tax and penalty-free, since those contributions were made with after-tax dollars. However, to withdraw earnings without taxes or penalties, you must meet two conditions: You must be at least 59½ years old. Your Roth IRA must have been open for at least five years. If you withdraw earnings before meeting these requirements, they could be subject to taxes and a 10% penalty. Required Minimum Distributions (RMDs) As mentioned, Traditional IRAs require RMDs starting at age 73. These are the minimum amounts you must withdraw each year, which are based on your account balance and life expectancy. Roth IRAs, however, do not require RMDs during the account holder’s lifetime, making them an attractive option for those who want to leave their IRA funds to heirs. The 10% Early Withdrawal Penalty If you need to access your IRA funds before age 59½, you’ll generally face a 10% early withdrawal penalty. However, there are several exceptions to this rule. Some of the most common exceptions for both Traditional and Roth IRAs include: Disability First-time home purchase (up to $10,000) Qualified education expenses Medical expenses exceeding 7.5% of your adjusted gross income Health insurance premiums during unemployment It’s essential to check whether your specific situation qualifies for an exception before making an early withdrawal. Planning […]

Business, SBA

by SouthStar BankApril 30, 2025

Resources for Your Small Business

May is National Small Business Month! As a small business owner, utilizing the excellent resources designed to help your business thrive and grow is essential. The links below provide information on various programs and resources offered by several different organizations. The U.S. Chamber of Commerce offers many resources for Small Businesses. Explore 18 various resources targeted at your needs! 18 Free Resources for Small Businesses to Leverage Year-Round | CO- by U.S. Chamber of Commerce The Small Business Administration (SBA) provides a wealth of resources designed for businesses just getting started to businesses that have been around for decades! The SBA also provides funding for businesses. SouthStar Bank is a preferred SBA lender. Contact your local branch for more details! Small Business Administration The U.S. Department of the Treasury offers Small Business Programs targeted at specific needs common among small business owners. Small Business Programs | U.S. Department of the Treasury The Texas Governor’s Office of Small Business Assistance assists small and medium Texas businesses through advocacy, entrepreneurial support, education, and technical assistance. The Texas Governor’s Office of Small Business Assistance Are you looking for a bank for your business, or do you have any questions? Contact your local branch today!

Employee News

by SouthStar BankApril 30, 2025

Welcome Ryan Ezzell

Ryan Ezzell, Personal Banker | SouthStar Bank Steiner Ranch Ryan Ezzell has joined the SouthStar Bank Steiner Ranch team as a Personal Banker. Ryan is a recent graduate of Texas State University and is excited to start his career in the banking industry. He looks forward to developing professionally in his new role while contributing to the bank’s goals and connecting with his customers. Outside of work, Ryan enjoys reading, running, and playing card games. He also enjoys traveling to Colorado and Hawaii, spending time sharpening his skills skiing the slopes in the winter and getting out to roller skate in the warmer months. Welcome to the team, Ryan!

Employee News

by SouthStar BankApril 21, 2025

Welcome Kevin Juliani

Kevin Juliani, Personal Banker | SouthStar Bank Leander Kevin Juliani has joined the SouthStar Bank Leander branch as a Personal Banker. Kevin has five years of banking experience and a degree from Housatonic College. Kevin is excited to bring his solid foundation of experience from working in large, national, and smaller regional banks. In his previous positions in the industry, he was able to hone his ability to work in a fast-paced environment where he consistently delivered exceptional service and built strong customer relationships while also acquiring experience adapting to the ever-changing banking industry. Outside of work, Kevin enjoys reading books, going on walks, and playing volleyball. He also enjoys traveling and has visited many beautiful destinations, including Portugal and Brazil. Kevin’s biggest personal achievement is moving to the U.S. alone at 18 and building a successful banking career from the ground up – navigating college full-time, working his way through multiple banks, and relocating across states all on his own! Welcome to the team, Kevin!

Retirement, Savings

by SouthStar BankApril 15, 2025

What is a SDIRA & How Does it Work?

What is a Self-Directed IRA (SDIRA) & How Does it Work? A Self-Directed IRA (SDIRA) is a retirement account that allows you to manage and select your investments. While financial institutions typically manage traditional IRAs with a set range of investment options, SDIRAs will enable you to invest in a wider array of assets. These can include real estate, tax liens, private companies, and physical precious metals. SDIRAs offer the same tax advantages as Traditional IRAs or Roth IRAs. Whether you choose a traditional Self-Directed IRA (tax-deferred) or a Roth Self-Directed IRA (tax-free withdrawals), the key difference is the broader range of investment opportunities and more control over where and how to invest your money. How Does a Self-Directed IRA Work? Open a Self-Directed IRA Account To open a Self-Directed IRA, the account holder must first choose a custodian or trustee who specializes in these types of accounts. These custodians ensure that your investments comply with IRS regulations, but don’t offer financial advice. SouthStar Bank can provide custodial services for SDIRA account holders. Fund Your Account SDIRAs are typically funded through rollovers from other retirement accounts (e.g., 401k, traditional IRA), contributions, or transfers from other IRAs. Select Your Investments Once the account is funded, SDIRA account holders have the flexibility to invest in a wide range of assets, including: Real estate Precious metals like gold or silver Private equity or venture capital Tax liens Private loans or promissory notes Follow IRS Rules While account holders control their investment decisions, following IRS guidelines is essential. For example, you can’t invest in businesses you or close family members are involved with. All investments must comply with IRS regulations to avoid penalties. Monitor and Manage Your Portfolio As the account holder, you are responsible for managing your investments, including researching opportunities and ensuring IRS compliance. Why Consider a Self-Directed IRA? The main appeal of a Self-Directed IRA is the ability to diversify your retirement portfolio. Traditional retirement accounts focus on stocks, bonds, and mutual funds, which can be affected by market volatility. Investing in alternative assets, such as real estate or precious metals, can help spread your risk across different asset classes. A Self-Directed IRA allows you to invest in what you know best, such as real estate or businesses you are familiar with, offering the potential for better returns and more control. Interested in opening a Self-Directed IRA? SouthStar Bank is proud to offer a range of IRA products, including our SDIRA offering, the Custodian Checkbook IRA. Our experts would be happy to assist you with the account opening process or any questions you may have! Contact ira@southstarbank.com or call our dedicated IRA line at (512) 384-3948 to begin. SouthStar Bank S.S.B. is an independent passive Custodian and is not associated or affiliated with and does not recommend, promote or advise any specific investment, investment opportunity, investment sponsor, investment company or investment promoter or any agents, employees, representatives or other of such firms or entities. Investments are not insured, have no guarantee, […]