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INDIVIDUAL RETIREMENT ACCOUNTS

Traditional IRA

It's never too late - or too soon - to open an IRA!

  • Allowed to contribute 100% of compensation (self-employment income for sole proprietors and partners) up to a set maximum dollar amount
  • Contributions may be tax deductible depending on the taxpayer's income, tax filing status and coverage by an employer-sponsored retirement plan
  • Withdrawal from an IRA is taxed as income (including the capital gains)

Roth IRA

  • Allowed to contribute 100% of compensation (self-employment income for sole proprietors and partners) up to a set maximum dollar amount
  • Contributions are not tax-deductible
  • Eligible distributions are tax-free

Education IRA

An Education IRA, or a Coverdell ESA CD, was created by Congress to provide people with a helpful and financially smart way to set aside funds for a child's education.

  • Provides a way to save, tax-free, for a child's education
  • Available for K-12, college, graduate school or any other formal education a child may pursue
  • Tax deduction is available to anyone who makes a contribution to an education IRA (parent, grandparent, etc.)

*Because these accounts are designed for retirement and other long-term savings, federal regulations require a penalty for early withdrawal and other tax penalties may also apply.

*Please consult your tax professional for more information.