Getting started in the right direction is tough when you’re not sure where to begin. That’s why we bring you knowledgeable people and several investment choices.
Everyone jokes about retiring early and wealthy. While we can’t promise either, we can help you get started in the right direction with an Individual Retirement Account (IRA). An IRA can also mean great tax advantages so you can put and keep more money in your pocket.
To help you save for retirement, we offer several types of IRA accounts. While each has specific advantages, the main benefit of an IRA is that you might be able to avoid paying taxes on the interest you earn until you withdraw your money. This helps your savings grow faster. You may also save money on taxes, too. Because by the time you’re ready to spend the money in your account (at retirement), you may be in a lower tax bracket than when you invested the money.
Whether you’re just collecting your first paycheck or nearly ready to begin enjoying your retirement, we can help.
Our first piece of advice: only invest in an IRA if you are sure you will not need to withdraw your money early (in most cases, early means within 5 years of opening your account or before you are 59 ½) because the IRS penalties can be expensive.
|Traditional IRA||Roth IRA||Education IRA/Coverdell ESA|
|Designed for||People who expect to be in a lower tax bracket once they retire||People who expect to be in the same or higher tax bracket when they retire||People who want to help pay for the educational expenses of someone under the age of 18|
|Eligibility||You must be under the age of 70 ½ and still collecting a paycheck||Any age, and still earning a paycheck||Anyone can contribute; the beneficiary must be under the age of 18|
|Tax features||Contributions are made with pre-tax dollars; your account grows tax-deferred||Contributions are made with after-tax dollars; your account grows tax-deferred; if you quality, withdrawals may be tax free too||Your account grows tax-free; no tax on earnings used for eligible education expenses; may be used to pay for elementary or secondary school|
|Annual Contribution Limit||$5,500; $6500 if over 50||$5,500; $6,500 if over 50||Up to $2,000, depending on your annual earnings|
|Other considerations||Can’t make contributions to this account once you are over age 70 ½||Can be used for estate planning and offers the benefit of tax-free income to your heirs||Beneficiary must use funds by age 30; account can be transferred to relative|
SmartPay less in taxes, save more for you
FreeNo fees to start investing
SimpleYou can open an account with as little at $1,000
FlexibleWe have several types to choose from