Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

Make real headway toward retirement when you open an IRA, including tax incentives* to help you get there. The sooner you start, the more likely you can retire at a timely age.

Find financial flexibility in your golden years. So you can spend your free time on your terms — not stuck behind a desk to draw a paycheck.

Benefits
  • Tax-advantaged* retirement savings
  • Competitive dividends above standard savings rates
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • $5,000 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Low $5 minimum deposit to open

*Consult a tax advisor.

Traditional vs. Roth

Traditional and Roth IRAs both offer unique tax-advantages* to accelerate your retirement saving. What's the difference? Compare below and consult a tax advisor to determine what type of IRA best suits your long-term plans.

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 (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals 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  • Principal contributions can be withdrawn without penalty*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.

Coverdell ESA

Start your child down the path to higher education with a smarter way to plan for rising tuition prices. So when the time comes, your student can focus on his or her studies instead of the cost.

A Coverdell Education Savings Account (ESA) earns tax-free* dividends to put towards qualified educational expenses — including tuition, books, board, and more.

Details:

  • No setup or annual fee
  • Dividends grow tax-free
  • Withdrawals are tax-free when used for qualified 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
  • $2,000 maximum annual contribution per child
  • NCUA insured

*Qualified expenses include tuition and fees, books, supplies, board, etc.

**Consult a tax advisor.