Individual Retirement Accounts (IRAs)

• Save for retirement with tax advantages*
• Earn competitive dividends above standard savings rates
  • Compounded and credited monthly
• Traditional, Roth, and Coverdell ESA options available
• No minimum balance requirements
• $25 annual fee
• Annual contribution limits apply (see current contribution limits;)
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to purchase term certificates within IRA
• Insured by the NCUA

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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 59½
• Early withdrawals subject to penalty²
• Mandatory withdrawals at age 70½

Roth IRA

• Income limits to be eligible to open Roth IRA³
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal¹
• Principal contributions can be withdrawn without penalty¹
• Withdrawals on dividends can begin at age 59½
• Early withdrawals on dividends subject to penalty²
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

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

²Certain exceptions apply, such as healthcare, purchasing first home, etc.

³Consult a tax advisor.

Higher education can become a financial burden. A Coverdell Education Savings Account (ESA) is designed to help lighten the load.

• Set aside funds for your child's education
• Dividends grow tax-free*
• Withdrawals are tax-free and penalty-free when used for qualifying 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
• Contributions are allowed regardless of traditional or Roth IRA participation
• $2,000 maximum annual contribution per child
• The money must be withdrawn by the time beneficiary turns 30
• The ESA may be transferred without penalty to another member of the family