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.