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Save
for your retirement, a down payment on your first home or
your child’s education. Depending on the type of IRA
you are eligible to open, your contribution and earnings may
be tax deferred or even free from federal income taxes. Your
adjusted gross income and your participation in your employee
sponsored pension plan may limit your eligibility to open
an IRA and may also limit your contributions.
We
offer Traditional IRA’s, Roth IRA’s and Coverdell
Education Savings Accounts. (formerly Education IRA) We accept
IRA rollover contributions. All of our FDIC insured savings
accounts and certificates of deposit
are eligible for IRA investments. We recommend you review
the various IRA options with your tax advisor to insure you
select the right plan for you.
Traditional
IRA
An
Individual Retirement Account (IRA) is a special savings plan
authorized by the Federal Government to help you accumulate
funds for your retirement. Every individual who has earned
income or received alimony may contribute to an IRA. You can
open or make contributions to your IRA any time up to and
including the due date of your tax return for the previous
tax year, normally April 15th.
2007 Annual Individual Contribution Limit:
$4,000 if under age 50
$5,000 if age 50 or older
2008 Annual Individual Contribution Limit:
$5000 if under age 50
$6000 if age 50 or older
ROTH
IRA
A
Roth IRA is a special savings plan authorized by the Federal
government to help you accumulate funds for your retirement.
Contributions are non-deductible but all withdrawals, including
earnings, are tax-free if the account has been open for five
years and the account holder is age 59 _ or older. You can
open or make a contribution to your Roth IRA any time up to
and including the due date of your tax return for the previous
tax year, normally April 15th.
2007 Annual Individual Contribution Limit:
$4,000 if under age 50
$5,000 if age 50 or older
2008 Annual Individual Contribution Limit:
$5000 if under age 50
$6000 if age 50 or older
COVERDELL
EDUCATION SAVINGS ACCOUNT (formerly Education IRA)
Formerly
called the Education IRA, the Coverdell Education Savings
Account (ESA) is a type of tax-advantaged savings account
created by the Taxpayer Relief Act of 1997 specifically for
paying qualified higher education expenses. Anyone –
whether related to the account beneficiary or not – may
contribute toward a child’s ESA. You can open or make
contributions to your ESA any time up to and including the
due date of your tax return for the previous tax year, normally
April 15th.
$2,000 annual limit per beneficiary
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