FOR IMMEDIATE RELEASE
Citigroup Inc. (NYSE: C)
February 06, 2007
Citibank Helps Customers Save for Retirement through New IRS Split Tax Refund Offering
For the First Time Enables Customers to Direct Deposit Tax Refund into a Citibank Individual Retirement Account
New York – Highlighting Citigroup’s commitment to providing superior customer service, Citibank is encouraging customers to take advantage of the IRS Split Tax Refund, a new service that allows taxpayers to split their tax refunds, in any proportion, and deposit the funds directly in as many as three different accounts – including, for the first time, a Citibank Individual Retirement Account (IRA). With the new option, establishing or supplementing a retirement savings plan with Citibank has never been easier, as customers can now direct deposit part or all of their 2006 federal income tax refund into a 2007 no-fee Citibank IRA.
The IRS introduced the Split Tax Refund this year to provide more options and flexibility for taxpayers when receiving their federal income tax refunds. The funds can be deposited directly into checking or savings accounts.
“We understand that saving for retirement is not always top-of-mind, making Citibank’s focus on providing customers easier ways to save and plan for retirement more important than ever,” said Jeff Pearlberg, Director of Products and Marketing, Citibank. “This tax season, we want to ensure that our customers understand the split tax refund initiative and how easy it is to now save for retirement by funding a Citibank IRA through direct deposit of their tax refund. We’re confident that our customers will find great benefit in the speed and convenience of this new savings opportunity as they begin or build their retirement savings plan.”
IRS Wage & Investment Commissioner Richard Morgante added: “Taxpayers will no longer need to choose between deposits to their checking or savings accounts. They can do both and even direct part of their refund to an IRA. We appreciate the financial industry working with us on this. The split refund option gives taxpayers more choices for managing their refund, teamed with the speed of direct deposit.”
A recent study found that more than 58% of Americans age 55 and over have saved less than $100,000 for retirement.1 An IRA is one of the easiest and most-effective ways to build retirement savings. With an annual contribution of up to $4,000 for tax year 2007 ($5,000 if aged 50 or over), IRAs are a smart way to take advantage of compounded interest and tax-free or tax-deferred earnings.
To divide their direct-deposit refunds, customers complete and attach the new Form 8888, Direct Deposit of Refund to More Than One Account, to their federal income tax return. They will also need to provide their account and routing numbers, instructing the IRS how much to deposit to each account.
Citibank offers the following IRA benefits:
- No annual fee
- View account online 24/7
- Access to a dedicated team of retirement planning specialists
- Save on monthly checking fees by linking an IRA to an eligible Citibank checking account
To receive further information or to open, transfer or rollover a no-fee Citibank IRA, visit a Citibank Financial Center or call 1-800-CITI-IRA.
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1 Employee Benefit Research Institute, Retirement Confidence Survey (2006)
Citibank
Citibank is a member of Citigroup, the leading global financial services company, which has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and wealth management. Major brand names under Citigroup’s trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, and Banamex. Additional information may be found at www.citigroup.com.