Individual Retirement Accounts (IRAs)

• Tax-advantaged retirement savings¹
• Competitive interest above standard savings rates
  • Interest calculated on the daily balance method
  • Interest compounded and credited quarterly 
• Traditional and Roth IRA options 
• No setup fees 
• No monthly or annual maintenance fees 
• Annual contribution limits apply (see current contribution limits; $6,000 as of 2020) 
• Additional $1,000 "catch-up" contribution allowed for ages 50+ 
• Funds can be used to purchase CDs within IRA
• No minimum deposit to open 

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 tax² 
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket) 
• Withdrawals can begin at age 59½ 
• Early withdrawals subject to penalty³ 
• Mandatory withdrawals at age 72   

Roth IRA 

• Income limits to be eligible to open Roth IRA¹ 
• Contributions are NOT tax deductible 
• Earnings are 100% tax free at withdrawal² 
• Principal contributions can be withdrawn without penalty² 
• Withdrawals on interest can begin at age 59½ 
• Early withdrawals on interest subject to penalty³ 
• No mandatory distribution age 
• No age limit on making contributions as long as you have earned income 

¹Consult a tax advisor. 

²Subject to some minimal conditions. Consult a tax advisor. 

³Certain exceptions apply, such as healthcare, purchasing first home, etc. 

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
  • Interest calculated on the daily balance method
  • Interest compounded and credited quarterly 
• Withdrawals are tax-free and penalty-free when used for qualified education expenses⁴
• Designated beneficiary must be under 18 when contributions are made 
• To contribute to an ESA, certain income limits apply⁵
• Contributions are not tax deductible 
• $2,000 maximum annual contribution per child 
• The money must be withdrawn by the time he or she turns 30⁶ 
• The ESA may be transferred without penalty to another member of the family 
• No minimum deposit to open 

⁴Qualified expenses include tuition and fees, books, supplies, board, etc. 

⁵Consult your tax advisor to determine your contribution limit. 

⁶Those earnings are subject to income tax and a 10% penalty.