Individual Retirement Accounts (IRAs)
You might be years or even decades from retiring, but it’s never too early — or too late — to start preparing with an IRA. We offer traditional and Roth options, so you can pick the plan that works for your lifestyle.
Compounded interest and tax-free growth¹ mean you’ll have the peace of mind to retire the way you want — whether that involves fishing at Crooked Creek every Thursday or traveling across the country.
- Summary
- Competitive interest above standard savings rates
- Traditional and Roth IRA options
- No setup fees
- No monthly or annual maintenance fees
- $5,500 contribution limit per year
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Funds can be used to purchase CDs within IRA
- $500 minimum deposit to open
- Traditional vs. Roth
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 59 ½
- Early withdrawals subject to penalty²
- Mandatory withdrawals at age 70 ½
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- Principal contributions can be withdrawn without penalty¹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 59 ½
- 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.
- Coverdell Education Savings Account (ESA)
Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow competitive dividends and also financial confidence for a new stage in life.
- Set aside funds for your child's education
- No setup or annual fee
- Interest grows 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
- $500 minimum deposit to open
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.
¹Consult a tax advisor.