Individual Retirement Accounts (IRAs)

• Tax-advantaged retirement savings*
• Competitive interest above standard savings rates
• Traditional and Roth IRA options
• No setup fees
• No monthly or annual maintenance charges
• $6,000 contribution limit per year
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to purchase CDs within an IRA

*Consult a tax advisor.

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
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59 ½
• Early withdrawals subject to penalty¹
• Mandatory withdrawals at age 70 ½

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• Principal contributions can be withdrawn without penalty on qualified distributions²
• Withdrawals on interest can begin at age 59 ½ with the 5 year aging requirement
• Early withdrawals on interest subject to penalty²
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

¹Certain exceptions apply, such as healthcare, purchasing first home, etc.
² Consult a tax advisor.

A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow competitive interest and financial confidence for a new stage in life.

• Set aside funds for your child's education
• No setup or annual fee
• Interest grows tax-free
• Withdrawals are tax-free and penalty-free when used for qualified education expenses¹
• Designated beneficiary must be under 18 when contributions are made
• To contribute to an ESA, certain income limits apply²
• Contributions are not tax deductible
• $2,000 maximum annual contribution per child
• The money must be withdrawn by the time he or she turns 30³
• The ESA may be transferred without penalty to another member of the family

¹Qualified expenses include tuition and fees, books, supplies, board, etc.
²Consult your tax advisor to determine your contribution limit.
³Those earnings are subject to income tax and a 10% penalty.