Individual Retirement Accounts

Pick the path that’s right for you and put your money to work. Whether you’re saving for your golden years or planning a long term savings path, Individual Retirement Accounts are excellent tools for achieving your goals. Plus, contributions may be tax-deductible and will grow either tax-deferred or tax-free.

TRADITIONAL IRA

Available to anyone under the age of 72 and contributions are fully tax-deductible if you are not an active participant in an employer retirement plan or your income does not exceed certain limitations. Investments grow on a tax-deferred basis, and contributions and earnings are taxed only upon withdrawal.

ROTH IRA

As long as you have earned income, you can establish and contribute to a Roth IRA, even after you’re 72. While contributions are not tax deductible, contributions and earnings can be withdrawn tax-free, with limitations. And unlike traditional IRAs, you’re not required to begin taking required minimum distributions after age 72. You can also convert your traditional IRA to a Roth IRA and enjoy tax-free withdrawals, subject to income tax now.

COVERDELL EDUCATION SAVINGS ACCOUNT

Coverdell Education Savings Account (ESA) earnings grow tax-free. And your ESA can be used to pay qualified elementary school and secondary school expenses as well as those for higher education. There is no tax deduction for contributions.

Traditional IRAs, Roth IRAs and Coverdell Education Savings Accounts must be opened and/or funded by April 15th for each tax year to receive tax deductions. Your total contributions to all your traditional and Roth IRAs cannot be more than $6,000 or $7,000 if you’re 50 or older. Contribution limit may be adjusted annual for inflation as determined by the IRS. Annual limit applies to any combination of IRA plans other than the Coverdell Education Savings Account. Retirement savings are federally insured by NCUA up to $250,000.