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
- 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
- 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- Principal contributions can be withdrawn without penalty*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 When college time comes, the funds may be withdrawn, tax-free.*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.