CDs & IRAs

IRAs

Roth: Best used for retirement savings

• Annual contributions is $6,000 ($7,000 if the individual is age 50 or older); income restrictions may apply
• Contributions can be made at any age & are non-tax deductible
• Distributions may be tax free
• Minimum distribution age is not required until after the death of the owner
• Early distributions will be penalized

Traditional: Best used for retirement savings

• Must be under 70 ½ to open
• Annual contributions is $6,000 ($7,000 if the individual is age 50 or older); income restrictions may apply
• Contributions may be tax deductible
• Minimum distribution age is 72
• Early distributions will be penalized

Educational: Best used for educational expenses

• Maximum annual contribution is $2,000 per beneficiary; income restrictions apply
• Earnings grow tax-free and withdrawals are also tax free
• Funds may be subject to penalties if withdrawn outside IRS guidelines
• Must be used for education expenses at an eligible institution

Term Share Certificates