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Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

These days fully-funded pension plans have gone the way of the dodo bird — and the social security "lockbox" looks like it's not far behind.

Be proactive and fund your retirement on your own dime. An IRA offers a tax-advantaged* way to grow your savings. So you can spend your golden years relaxing — not maxxing out.

  • Tax-advantaged* way to save money
  • Choose between traditional, Roth, or Coverdell Education Savings account
  • No annual or setup fees
  • No maintenance fees
  • $5,500 annual contribution limit (as of 2013)
  • $1,000 annual catch up contribution for ages 50+

See our current rates.

Traditional vs Roth

Traditional IRA

  • No income limits to open
  • No minimum contribution in any year
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals begin at age 70½

Roth IRA

  • 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  • Principal contributions can be withdrawn without penalty*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.


A Coverdell, or Educational, IRA is a savings plan created to fund higher education. Anyone may make non-deductible contributions to a Coverdell IRA for a students under 18. When college time comes, the funds may be withdrawn, tax-free.*

  • Distributions are tax-free, but must be used at an eligible institution, such as:
  • Any accredited public, private, or religious school that provides elementary or secondary education
  • Accredited college, university, vocational or post-secondary educational institution eligible to participate in a Department of Education approved student aid program
  • Distributions are tax-free as long as they are used for qualified education expenses, including:
  • Tuition and fees
  • Required textbooks
  • Necessary school supplies and equipment
  • Room and board
  • If the distribution exceeds qualified education expenses, a portion will be taxable to the beneficiary and will usually be subject to an additional 10% tax.**

*Consult a tax advisor.

**Exceptions to the additional 10% tax include the death or disability of the beneficiary or if the beneficiary receives a qualified scholarship.