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♥ Principal contributions can be withdrawn without penalty*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♦ The money must be withdrawn by the time beneficiary turns 30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