IRAs: Roth IRAs & Traditional IRAs
Individual Retirement Accounts (IRA) may be opened at any time with a deposit of $10 or more. Funds can also be invested in IRA certificates starting at $500, and earn the same favorable rates and terms as our regular share certificate accounts.
Roth IRA
Yearly contribution for 2022 is $6,000, or $7,000. if you are 50+
Contributions are not-tax-deductible.
Contributions generally can be distributed tax-free at any time.
Earnings grow tax-deferred.
Earnings can be distributed tax-free if the Roth IRA owner first made a Roth IRA contribution at least five years ago, and is age 59 ½ or older, disabled, deceased, or qualifies as a first-time home-buyer.
Distributions are not required until after the Roth IRA owner dies.
Traditional IRA
Yearly contribution for 2022 is $6,000, or $7,000. if you are 50+
Contributions may be tax-deductible.
Earnings grow tax-deferred.
Distributions generally are taxable.
Distributions before you reach age 59 ½ are subject to penalty tax, unless you have an early distribution penalty tax exception.
Required minimum distributions must begin at age 72.
Coverdell Education Savings Accounts (ESA)
A Coverdell ESA can help you save for a child's education expenses including tuition & fees, books, tutoring, supplies, technology, equipment, internet access, related services, uniforms, transportation, supplementary items, room & board (limits apply). They may be used for elementary, secondary and higher education expenses (public & private schools).
With an ESA you make nondeductible contributions that provide the potential for tax-free withdrawals - including earnings - down the road*.
Who Can Contribute to an ESA? Anyone can contribute to a child's ESA; family & non-family alike, as long as the contributor's modified adjusted gross income (MAGI) falls below or within the applicable income limits*.
* This is not intended as tax advice. Please consult your tax professional to determine your eligibility.