Individual Retirement Accounts (IRAs)

• Save for retirement with tax advantages¹
• Competitive interest above standard savings rates
• Traditional and Roth IRA options
• No setup fees, monthly or annual maintenance fees
• Annual contribution limits apply (see current contribution limits; $6,000 as of 2022)¹
• Additional $1,000 "catch-up" contribution allowed for ages 50+

¹Consult 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
• Contributions are tax deductible on state and federal income tax¹
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59½
• Early withdrawals subject to penalty²
• Mandatory withdrawals 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• Principal contributions can be withdrawn without penalty¹
• Withdrawals on interest can begin at age 59½
• Early withdrawals on interest subject to penalty²
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

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

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

³Consult a tax advisor.

The Coverdell Education Savings Account is a savings plan for those wishing to fund higher education expenses of a designated beneficiary. The earnings will be tax free if used for qualified education expenses.

• 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• The money must be withdrawn by the time he or she turns 30
• 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.