CDs & IRAs

A Traditional IRA² allows you to save for retirement while deferring taxes on your principle and earnings until they are withdrawn. Contributions you make to a Traditional IRA may be fully or partially tax deductible. Please consult your tax advisor as to which type of IRA best fits your needs.

 

 A Roth IRA² offers tax-free income in retirement. Although there is no up-front tax deduction for Roth IRA contributions, distributions are tax-free when you follow the rules. Roth IRAs make the most sense if you expect your tax rate to be higher during retirement than your current rate. You can contribute to a Roth IRA at any age if you have earned income from a job. Please consult your tax advisor as to which type of IRA best fits your needs.

 

 A Coverdell ESA³ is an investment account that can only be used to save for qualified Elementary, Secondary, or College Education expenses. The designated beneficiary must be under 18 years of age or be a special needs beneficiary and can be used until a child reaches 30 years of age. Upon that time, it may be transferred to another eligible family member who is under 30 years old. Deposits to a Coverdell ESA are not tax deductible and may only be made before the child turns 18 years of age. There's no limit to the number of accounts that can be established for a particular beneficiary; however, the total contribution to all accounts on behalf of a beneficiary in any year can't exceed $2,000 and contributors must contribute by the due date of their tax return (not including extensions). For more information on Coverdell ESAs, refer to www.irs.gov/taxtopics/tc310.html, and/or www.savingforcollege.com.