Individual Retirement Accounts (IRAs)

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

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.

Traditional IRA Details

• No income limits to open
• No minimum contribution requirement
• Contributions are tax deductible on state and federal income tax*
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59 ½
• Early withdrawals subject to penalty**
• Mandatory withdrawals at age 72

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

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

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 Roth IRA has the potential for the most tax benefit at time of retirement.

Roth IRA Details

• Income limits to be eligible to open Roth IRA***
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal*
• Principal contributions can be withdrawn without penalty*
• Withdrawals on interest can begin at age 59½
• Early withdrawals on interest subject to penalty**
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

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

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***Consult a tax advisor.

Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow interest and also financial confidence for a new stage in life.

• Set aside funds for your child's education
• Funds can be used at eligible schools nationwide, including K-12 expenses
• $100 minimum deposit to open
• No setup or annual fee
• Interest grows tax-free
• Withdrawals are tax-free and penalty-free when used for qualified education expenses*
• Designated beneficiary must be under 18 when contributions are made
• To contribute to an ESA, certain income limits apply**
• Contributions are not tax deductible
• $2,000 maximum annual contribution per child
• The money must be withdrawn by the time he or she turns 30***
• The ESA may be transferred without penalty to another member of the family

*Qualified expenses include tuition and fees, books, supplies, board, etc.

**Consult your tax advisor to determine your contribution limit.

***Those earnings are subject to income tax and a 10% penalty.