IRA / Education Plans

A comfortable retirement is a part of the American Dream and an IRA is one of the best ways to help make that dream come true. People are retiring earlier and living longer. Withdrawals from an IRA can be an important supplement to other retirement income such as pension payments and social security checks.

• Traditional IRA
• Roth IRA
• Contribution Limits and Catch-Up Provision
• Direct Rollover
• Self-Directed IRA
• Coverdell Education Savings Account

Traditional IRA

• Contributions may be tax-deductible
• Earnings grow tax-deferred
• Can be used to receive a direct rollover from your employer plan
• Variable and fixed rate accounts available

You may want to consider a Traditional IRA if:

• You are looking for a tax deduction
• You anticipate being in a lower tax bracket in retirement

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Roth IRA

• Contributions are non-deductible
• Earning on qualified distributions are tax-free
• No required distributions at age 70 1/2
• Variable and fixed rate accounts available

You may want to consider a Roth IRA if:

• You do not qualify for a deduction on the Traditional IRA
• You expect to be in a higher tax bracket at retirement
• You want your money to grow tax-free

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Contribution Limits and Catch-Up Provision

Contribution Limits - You may contribute 100% of your earned income up to the amount of the maximum annual contribution limit.

"Catch-up" Provision - Individuals 50 or over before the close of the tax year can make an additional contribution of $500 for the tax years 2002 to 2005 and $1,000 for tax years 2006 and beyond.

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Changing jobs or retiring? A direct rollover of your 401(k) or retirement plan to a traditional IRA is a non-taxable event. If you have questions concerning a direct rollover or need help completing the paperwork from your former employer, we would be happy to help. Please call or stop by your local branch to talk to the IRA specialist.

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Self-Directed IRA

For information on Self-Directed IRAs and alternative investment choices, please click here for more information about our brokerage services.

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Coverdell Education Savings Account - (formerly the Education IRA)

• Contributions are non-deductible
• $2,000 annual contribution limit per beneficiary
• Contributions may be made for children younger than 18
• Accounts must be used by age 30
• Variable and fixed rate accounts available
• Earnings are tax-free if used for qualified education expenses

For more information on 529 College Savings Plans, please click here for more information about our brokerage services.

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