Invest now, enjoy later with Individual Retirement Accounts.
Traditional IRA
A Traditional Individual Retirement Account (IRA) allows anyone to make tax-deductible contributions.
- Earnings grow tax-free until funds are withdrawn
- Early withdrawals possible – 10% penalty fee applies
- You can withdraw money from the account to fund your retirement at 59 ½ years old
- Contributions may be tax-deductible (consult your tax advisor)
- No annual fees
Roth IRA
A Roth IRA is an Individual Retirement Account that provides tax-free growth.
- Advantage of getting taxed only once, rather than twice (or more) as with a regularly-taxed investment account.
- Make withdrawals at any time, tax-free and penalty-free
- You pay income tax, and then make your contribution with post-tax dollars
- Your principal grows tax-free
- No annual fee
Education (Coverdell)
Fund an individual’s education with a Coverdell Individual Retirement Account (IRA).
- Tax-deferred earnings (until distributed)
- Distributions typically tax-free
- Student will not owe tax on any withdrawal from account as long as it is equal to or less than the child’s education expenses (at an eligible educational institution)
- Withdrawals may be used for K-12, and college education expenses
- No annual fee
*See Truth-in-Savings Disclosure for transaction restrictions. Please consult your tax advisor.
Traditional IRAs vs Roth IRAs
Traditional IRA
A Traditional IRA offers potential tax-deductible contributions and the opportunity for your earnings to grow tax-deferred until they are withdrawn in retirement. This means you won’t pay federal income taxes on your deductible.
Roth IRA
A Roth IRA provides the opportunity for your earnings to grow tax-free. Generally, Roth IRAs offer greater tax savings and withdrawal flexibility than Traditional IRAs.