Individual Retirement Accounts (IRAs)

• Competitive interest above standard savings rates
• Traditional and Roth IRA options
• No setup fees
• No monthly or annual maintenance fees
• Annual contribution limits apply
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to purchase CDs within IRA
• $100 minimum deposit to open

There are advantages to both Traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A Traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement. 

Traditional IRA

• No income limits to open
• No minimum contribution requirement
• Contributions are tax deductible on state and federal income tax¹
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59 ½ without penalty
• Early withdrawals may be subject to an IRS penalty²
• Mandatory withdrawals begin at age 70 ½ 
• Age limits appy to contributions - Must have qualified income

Roth IRA

• Income limits to be eligible to open Roth IRA³
• Contributions are NOT tax deductible
• Earnings are 100% tax free at time of withdrawal if the distribution is qualified¹
• Principal contributions can be withdrawn without penalty¹
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income 
• Withdrawals may be subject to taxes and penalty, depending on your age, the five year period and other conditions
• No age limit on making contributions as long as you have qualified income

¹Subject to some minimal conditions. Consult a tax advisor.

²Certain exceptions apply, such as healthcare, purchasing first home, etc. Consult a tax advisor.

³Consult a tax advisor.

Lay a foundation of success for your child or a child you know — start saving early for educational expenses with a Coverdell Education Savings Account.

Your contributions will earn competitive interest, tax-deferred. When it comes time for your recipient to withdraw funds, the funds are tax-free as long as they're applied to qualified educational expenses. Prepare your child for a bright future today — apply for your account online in minutes.

Details:

• Save for a child's future educational expenses
• No annual maintenance fee
• Earnings grow tax-deferred
• Distributions are tax-free when applied to qualified education costs
• Can be opened by anyone — not just family members of a child
• Can be opened for any child younger than age 18
• Special needs children may be eligible after they reach 18
• No minimum deposit to open 

Account Requirements:

• Contributions limited to $2000 annually
• Contributions are not tax-deductible
• Contributions must stop when beneficiary reaches age 18
• Beneficiary must withdraw remaining assets within 30 days after reaching age 30, or roll assets over tax-free to a new Education ESA for the benefit of another eligible family member
• Distributions not used for qualified educational expenses are taxable, and subject to a 10% penalty
• Taxpayers filing jointly with AGI (Adjusted Gross Income) below $190,000 are eligible to contribute (eligibility phases out as AGI increases from $190,000 to $220,000).
• Single filers with AGI below $95,000 are eligible to contribute (eligibility phases out as AGI increases from $95,000 to $110,000)