Take advantage of these individual retirement accounts we offer: Traditional, Roth, and Education (Covedell Education Savings Account) that are specifically designed to give you tax incentives and compound interest rates that continually grow and are tax deferred.
These accounts are available as IRA Share certificates with terms from 6 to 60 months.

IRA Savings Accounts helps build your future security for retirement and educational costs. There is no minimum balance requirement. Deposit amounts are limited to current Internal Revenue Service Regulations.

Investment Opportunities in IRA's

Roth IRA

A Roth IRA is an individual retirement account that offers a valuable future tax break: Tax-free income retirement. A Roth IRA gives you more flexibility, in that you can withdraw your contributions at any time without taxes or penalties (interest earnings normally cannot be withdrawn without tax or penalty until you have had the Roth for 5 years and you are at least 59 1/2). Another advantage is that there are no mandatory withdrawals, as there are with traditional IRA's which mandate withdrawals starting at age 70 1/2. You can contribute to a Roth IRA at any age, as long as you have earned income from a job.  Although there is no up-front tax deduction for Roth IRA contributions, as there is with traditional IRA, Roth distributions are tax-free when you follow the rules below.  Because all the money in a Roth IRA is your money, you can tap into contributions (but not your interest earnings) any time tax-free and penalty-free.

  •         To qualify for a Roth IRA you must have earned income in the year you want to make a contribution.       
  •          The 2016 maximum contribution limit for a Roth IRA is $5,500 for individuals under age 50. Individuals age 50 and over can contribute up to $1,000 extra per year for a total of $6500.
  •          If you earn less than the maximum contribution limit, your maximum   contribution limit can only be as much as you earned

Traditional IRA

  • Penalty free withdrawals on both earnings and contributions after age 59 ½
  • Earnings grow tax deferred until withdrawn after age 59 ½
  • Earnings withdrawn after age 59 ½ are taxed at your current rate
  • Contributions may be tax deductible

 Education IRA

The Covedell Education Savings Account:

  •            Enables parents and others to deposit $500 per year designated for            educational purposes.  
  •            Earnings grow tax-free, as long as you meet ther income                              requirements

Call the office for more information or to open an IRA.  

Consult a tax advisor if you need clarification on the tax implications (eligibility, contribution limits, deposit deadlines, etc.) or help in making decisions about the best retirement and/or education investment options for you.


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