Individual Retirement Account (IRAs)

• Save for retirement with tax advantages*
• Earn competitive dividends higher than regular savings
• Pays monthly dividends
• Available in traditional and Roth
• Annual contribution limits apply*
• $1,000 annual “catch up” contributions allowed for ages 50 and better
• Funds can be used to purchase term certificates within IRA
• $25 annual fee
• No minimum balance requirements
• Federally insured
• $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 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 70 ½ 

Roth IRA

• Prepare for qualified medical expenses
• 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• Principal contributions can be withdrawn without penalty*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 59 ½
• Early withdrawals on interest subject to penalty*
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

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• The money must be withdrawn by the time beneficiary turns 30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