Individual Retirement Accounts (IRA)

• Tax-advantaged retirement savings¹
• Competitive interest above standard savings rates
• Traditional IRAs, Simplified Employee Pension (SEP) IRAs, Roth IRAs and Coverdell ESAs available
• No setup fees
• No monthly or annual maintenance fees
• Annual contribution limits apply (see current contribution limits; $6,000 as of 2020)¹
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to purchase certificates within IRA
• No minimum deposit to open

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

When do you want to enjoy your tax advantage? A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at the 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 72 for IRA Owners born after July 1, 1949

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• Principal contributions can be withdrawn without penalty¹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 dividends can begin at age 59½
• Early withdrawals on dividends subject to penalty²
• No mandatory distribution ages

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

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

³Consult a tax advisor.

Help your student prepare for college. A Coverdell ESA provides a safe, tax-free place to build savings early for education expenses — free of setup and annual fees.

• 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• The money must be withdrawn by the time he or she turns 30³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
• No 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.