62 NOVEMBER / DECEMBER 2022 2% nonelective contribution can be made regardless of whether an eligible individual makes a salary deferral. Traditional and Roth IRAs If a gig worker has enough eligible compensation, they can contribute to an IRA. IRA contribution limits are lower than employer plan contribution limits—$6,000 in aggregate in 2022, plus a $1,000 catchup contribution if 50 years and older. Individuals may be able to deduct their Traditional IRA contributions, or if eligible, they may choose to make a nondeductible Roth contribution that may be distributed tax-free later on. If a Roth IRA distribution is qualified, all distributed assets (not just the contributions) are tax-free. If a distribution is nonqualified, some of the assets (generally the earnings) may be subject to regular income tax and a 10% early distribution penalty tax unless the Roth IRA owner qualifies for a penalty tax exception. The possibility of taking tax-free Roth IRA distributions may appeal to those individuals who find it necessary to dip into their retirement savings to pay for unexpected expenses. Health Savings Accounts Many gig workers may have high deductible health plans in order to have lower premiums. If so, they may be eligible to open a health savings account. An HSA can be used to pay for qualified medical expenses now or in retirement. HSA savings can also be used to supplement retirement income as more HSA owners take advantage of its triple tax advantage of tax-deductible contributions, tax-deferred growth, and taxfree distributions. While gig workers may choose a nontraditional employment route on the road to retirement, they will still need to save along the way. Fortunately, there are many ways for them to invest and grow their nest egg and retire well. HB IN MEMORY OF Dr. Keith M. Ernst, 94, chairman of the board at First National Bank, Cloverdale, passed away Sept. 24. A physician by trade, he practiced family medicine at his own medical office in Cloverdale for 48 years after his honorable discharge from the U.S. Army. Ernst was a loyal supporter of Cloverdale Community Schools, including providing medical care for the Cloverdale High School boys basketball teams for many years. He was an active member of both the Indiana Bankers Association and Community Bankers Association of Indiana, as well as the DePauw University Community Advisory Council. Ernst was named a Sagamore of the Wabash in 2003, awarded the 1996 Civic Award by the Cloverdale Lions Club and was a member of the IBA 40 Year Club. He attended Vincennes University and the University of Illinois before graduating from the Kirksville College of Osteopathic Medicine. Paul R. “P.R.” Sweeney, 80, past president and CEO of Old National Bank, Evansville, passed away Aug. 1. He served as a senior bank examiner for the Indiana Department of Financial Institutions, and as an auditor for Geo S. Olive & Co. in Indianapolis before beginning his career at Security Bank & Trust Company in 1969. There, he started as an auditor and worked his way up to be named president and CEO in 1994, following in his father’s footsteps. Sweeney was the bank’s 10th and final president, before serving in the same capacity at Old National Bank until his retirement in 2001. Sweeney served on many civic, community and state boards, including Vincennes University’s board of trustees and director of the Vincennes University Foundation, president of the Knox County Hospital Association, trustee of the Indiana Historical Society and the Indiana State Museum, president of the Vincennes Kiwanis Club and board member for the Indiana Department of Financial Institutions. He was a member of the Indiana Bankers Association 40 Year Club, received his associate’s degree from Vincennes University, bachelor’s from Indiana State University and a graduate degree from the Stonier School of Banking at Rutgers University. Ronald L. Humphrey, 84, retired president and chairman of the board for Kentland Bank, passed away May 5. Humphrey started his career as an assistant county agent and manager of the Federal Land Bank before leading a newly formed trust department at Kentland Bank. He worked at Kentland for 47 years, moving from trust officer to executive vice president, president and chairman of the board. Humphrey was a member of the Indiana Bankers Association 40 Year Club and earned his bachelor’s degree at Purdue University. Earl W. Charneske Jr., 61, senior vice president and Midwest regional manager of PCBB, Walnut Creek, California, passed away Aug. 23. He served at PCBB since 2006, and previously as associate director of capital markets at Bank of America from 1994-2001, and associate director at Continental Illinois Bank from 1980-1994. HB
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