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

by SouthStar BankJuly 16, 2025

Transitioning Your IRA

If you’re planning for retirement and looking for a better way to manage your investments, transitioning your IRA to a trusted local bank can be a wise step. Whether you’re consolidating accounts, seeking better service, or rethinking your strategy, making the move to SouthStar Bank offers personalized support, a broad range of account options, and peace of mind for your retirement future. In this guide, we’ll walk you through why and how to transition your IRA to SouthStar Bank, and what you need to know to make the process smooth and tax-efficient. Why Consider an IRA Transfer? An Individual Retirement Account (IRA) is one of the most powerful tools for long-term saving, but not all IRA providers offer the same value. You might consider transitioning your IRA if: You’re looking for more personalized, local service. You want to consolidate multiple IRAs into one, easier-to-manage account. Your current IRA has high fees or limited investment options. You’ve changed jobs and need to roll over a 401(k) into an IRA. You’re interested in a Roth conversion for tax-free retirement income. At SouthStar Bank, our experienced financial team works with you one-on-one to understand your retirement goals and help you make informed choices about your future. Benefits of Moving Your IRA to SouthStar Bank Transitioning your IRA to SouthStar Bank gives you access to: Local, personalized service from real people who know your name and care about your future Flexible IRA options including Traditional, Roth, SEP, and SIMPLE IRAs FDIC-insured IRA savings accounts and Certificates of Deposit (CDs) for low-risk investors Self-Directed IRA with Checkbook Control offering flexible investment options Simple rollover and transfer support to make the transition stress-free Whether you’re nearing retirement or just getting started, our retirement solutions are designed to meet you where you are and grow with you. How to Transition Your IRA to SouthStar Bank Review Your Current IRA Start by looking at your current IRA account. Note the type (Traditional or Roth), the investment performance, fees, and if it aligns with your long-term goals. Contact a SouthStar Bank Specialist Our team is here to guide you through every step. We’ll discuss your options, explain the benefits of different IRA types, and help you choose the best solution. Contact our IRA experts at ira@southstarbank.com or 512.384.3948. Initiate a Direct Transfer We recommend a direct trustee-to-trustee transfer, which moves your funds from your existing provider straight into your new SouthStar Bank IRA. This avoids taxes and early withdrawal penalties. Monitor and Confirm Our team will keep you informed throughout the process, and we’ll ensure your funds are moved safely and securely. IRA transfers typically take 7-14 business days, but in some cases transfers can take longer. Let SouthStar Bank Help You Plan Your Retirement When it comes to transitioning your IRA, you deserve more than just a transaction—you deserve a relationship. At SouthStar Bank, we believe retirement planning is personal. That’s why we offer tailored advice, responsive service, and a commitment to helping your savings grow. Ready to transition […]

Savings

by SouthStar BankJuly 8, 2025

Money Market vs Traditional Savings: What Account is Right for You?

When deciding how to save money effectively, money market accounts and traditional savings accounts are two popular and safe options offered by banks. Both types of accounts provide interest earnings and federal insurance protection, but they differ in features, interest rates, access, and minimum balance requirements. Understanding the differences in each account is crucial to finding the right account for your needs! What Is a Traditional Savings Account? A traditional savings account is a basic deposit account that allows you to securely save money while earning interest. It’s a low-risk option insured by the FDIC up to $250,000 per depositor, providing peace of mind that your funds are safe. Features of Traditional Savings Accounts Lower interest rates: Typically range between 0.01% and 0.50%. Check our current rates here. Easy access to funds: Withdrawals and deposits are simple, though federal regulations limit certain withdrawals to six per month. Low minimum deposit requirements: A Traditional Savings Account at SouthStar Bank has a minimum opening deposit of $100 (as of 6/26/25). Minimal or no fees: Monthly fees are often waived when minimum balances are maintained. What Is a Money Market Account? A money market account (MMA) combines features of savings and checking accounts, often paying higher interest rates due to investments in short-term government securities and other low-risk instruments. Like traditional savings, MMAs are FDIC insured up to $250,000. Features of Money Market Accounts Higher interest rates: MMAs generally offer better returns than traditional savings accounts. Check our current rates here. Limited check-writing privileges: You may be able to write checks, offering more transactional flexibility. Higher minimum balance requirements: Usually require $1,000 or more to open and avoid fees. Money Market Account vs Traditional Savings Account: A Side-by-Side Comparison Feature Traditional Savings Account Money Market Account Interest Rates Typically Lower Typically Higher Minimum Deposit Low Higher ($1,000 or more) Access to Funds Limited withdrawals, no checks Checks allowed Fees Usually none or low Possible monthly fees if balance not met Safety FDIC insured FDIC insured Which Is Better: Money Market Account or Traditional Savings Account? Choosing between a money market account vs traditional savings account depends on your savings goals, balance, and how frequently you need access to your funds: If you want a straightforward, low-maintenance account to grow your emergency fund with easy access, a traditional savings account is likely the better choice. If you want to maximize interest earnings and appreciate some check-writing access with your savings, and you can maintain a higher balance, a money market account may be more suitable. Tips to Maximize Your Savings Avoid monthly fees by meeting minimum balance requirements. Use money market accounts for larger emergency funds or short-term savings that require occasional access. Use traditional savings accounts for smaller balances or savings goals with less frequent withdrawals. Both money market accounts and traditional savings accounts offer safe, insured ways to save money, but they serve different needs. Money market accounts typically provide higher interest and more access options but require larger balances. Traditional […]

Bank News, Giving Back

by SouthStar BankJuly 7, 2025

Resources for Texas Communities Following the July 2025 Floods

Our hearts go out to the families and communities impacted by the devastating flooding in Central Texas this past weekend. SouthStar Bank stands ready to support those in need during this difficult time. We are committed to being a resource for our neighbors. Please note that law enforcement officials are asking the public not to self-deploy for relief efforts. However, there are many safe and meaningful ways to get involved. Below is a list of resources for everyone impacted or wanting to help during this difficult time. Residents Impacted by the Floods FEMA (Federal Emergency Management Association): Disaster assistance customer service at 800-621-3362, or by registering online at www.disasterassistance.gov. DR-4879-TX Texas Severe Storms, Straight-line Winds, and Flooding Information Disaster Distress Helpline – Call or text 1-800-985-5990 Texas Disaster Portal at disaster.texas.gov. Check Road Conditions: DriveTexas.org Flooding Resources: TexasFlood.org‍ Flood Safety Tips: Ready.gov/floods‍ Call 2-1-1 for information on evacuation shelters, or visit tdem.texas.gov/shelter‍ Homeowners Impacted by the Floods 3 steps homeowners should take after a natural disaster: Talk to a housing counselor at no cost to you by calling 1-855-HERE2HELP or schedule an appointment. Contact your insurance company Contact your mortgage loan servicer How To Help The Red Cross The Salvation Army Austin Pets Alive! World Central Kitchen SouthStar Bank Relief Fund Assistance for Small Business Owners SBA Disaster assistance: SBA’s Customer Service Center at 1-800-659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. SouthStar Bank Relief Fund SouthStar Bank has opened two accounts dedicated to relief efforts for communities in Kerr and Williamson County impacted by the recent floods. Donations can be made in person or, if you prefer, by check, payable to SouthStar Bank. All 16 SouthStar Bank branches will accept donations through July 31. Locations within Williamson County include Georgetown and Leander, and within Kerr County, the Kerrville branch. SouthStar Bank has initiated fundraising efforts by making a $2,500 donation to both the Kerr County and Williamson County Relief Funds. For more information, contact your local SouthStar Bank branch. Be Aware of Fraud & Scams How To Avoid Scams After Weather Emergencies and Natural Disasters Frequently Asked Questions About Disasters How to/Where to report a scam Charity and Disaster Fraud Change of Address: If you need to update your address, please use the United States Postal Service website or visit a post office to make any necessary changes.

Retirement, Savings, Self-Directed IRA

by SouthStar BankJune 17, 2025

5 Benefits of a Self-Directed IRA (SDIRA)

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 SDIRA journey? SouthStar Bank is ready to […]

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!