Individual Retirement Accounts (IRAs)

IRA Share

• No set-up fees
• Maintain a $100 minimum balance to avoid the $10 monthly service fee
• Funds can be used to purchase certificates within IRA
• $100 minimum deposit to open

IRA Share Certificate

• No set-up fees
• At maturity, share certificate funds may be transferred to an IRA share within the IRA
• Certificate penalties may apply
• Minimum opening deposit:
  • $500 under age 19
  • $1,000 age 19 and over

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 may be tax deductible*
• Earnings are tax deferred until withdrawal*
• Withdrawals can begin at age 59 ½*
• Early withdrawals subject to penalty**
• Mandatory withdrawals at age 70 ½
• Contribution limits are determined annually by the IRS
• Additional $1,000 "catch-up" contribution allowed for ages 50 and over

Roth IRA

• Eligibility to open Roth IRA determined by income*
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal*
• Contributions can be withdrawn without penalty*
• Withdrawals on dividends can begin at age 59 ½*
• Early withdrawals on dividends subject to penalty**
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

*Consult a tax advisor.

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