A penny saved is a penny earned — so why squander it all before retirement? Be smart and open an IRA while you're still earning income.
- Competitive Interest
- No Monthly or Annual Fees
- Tax Advantages1
- 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.
- 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
- 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- Principal contributions can be withdrawn without penalty1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.
- 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
- 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)
1Consult a tax advisor.