Individual Retirement Accounts (IRAs)

• Competitive dividends above standard savings rates
• Traditional, Roth and Coverdell ESA options available
• No setup fees
• No monthly or annual maintenance fees
• Funds can be used to purchase CDs within IRA

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
• Contributions may be tax deductible¹
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Penalty-free withdrawals can begin at age 59½
• Early withdrawals subject to penalty²
• Mandatory annual withdrawals beginning at age 70½ 

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• Principal contributions can be withdrawn without penalty¹
• Penalty-free withdrawals on earnings can begin at age 59½
• Early withdrawals subject to penalty²
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

¹ Subject to some minimal conditions. Consult a tax advisor.

² Certain exceptions apply, such as healthcare, purchasing first home, etc.

³ Consult a tax advisor.

Create an easier transition into college — for you and your student — by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a safe, tax-free place to grow competitive dividends for qualified educational costs.

• 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 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• The money must be withdrawn by the time he or she turns 30³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
• $25 minimum deposit to open

¹ Qualified expenses include tuition and fees, books, supplies, board, etc.

² Consult your tax advisor to determine your contribution limit.

³ Those earnings are subject to income tax and a 10% penalty.