You’ve earned the right to enjoy a great retirement. Start saving for it today with special tax advantages.*
Key Features
- Tax Advantages*
- Competitive Dividends
- No Setup or Maintenance Fees
- Tax-advantaged retirement savings*
- Earn competitive dividends above standard savings rates on balances over $100
- Traditional and Roth IRA options
- No setup fees
- No monthly or annual maintenance fees
- $6,000 contribution limit per year
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Funds can be used to purchase share certificates within IRA
- $100 minimum deposit to open
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
- Contribution limits apply*
- 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 59 ½
- Early withdrawals subject to penalty**
- Mandatory withdrawals at age 72
Roth IRA
- Contribution limits apply*
- 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- Principal contributions can be withdrawn without penalty**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 dividends can begin at age 59 ½
- Early withdrawals on dividends subject to penalty***
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
Resources
- Traditional vs. Roth Informational Brochure (PDF)
- Traditional IRA Frequently Asked Questions (PDF)
- Roth IRA Frequently Asked Questions (PDF)
*Refer to the IRS website for current limits.
**Subject to some minimal conditions. Consult a tax advisor.
***Certain exceptions apply, such as healthcare, purchasing first home, etc.
College is costly — but a little pre-planning can go a long way. Set aside savings for your child’s college education in a CESA, where your dividends will grow tax-free.*
Withdrawals are tax-free and penalty-free when used for qualified education expenses* before he or she turns 30.** As an added bonus, there’s no penalty to transfer the account to another member of the family.
- Set aside funds for your child's education
- No setup or annual fee
- Dividends grow tax-free*
- Withdrawals are tax-free and penalty-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
- The money must be withdrawn by the time he or she turns 30***
- The ESA may be transferred without penalty to another member of the family
- $100 minimum deposit to open
Resource
*Qualified expenses include tuition and fees, books, supplies, board, etc.
**Earnings withdrawn after he or she turns 30 are subject to income tax and a 10% penalty.
***Consult your tax advisor to determine your contribution limit.