Basic IRA Account

An individual retirement account (IRA) is a personal savings plan that offers tax advantages to customers who set aside money for retirement, a possible tax deduction and tax deferred earnings.

Customers may be able to deduct contributions to their IRAs in whole or in part, depending on their circumstances, and generally those amounts, including earnings and gains, are not taxed until distributed.

• must have earned income (W-4)
• must be under age of 70 ½
• deadline to contribute April 15

ROTH IRA Account

A Roth IRA is nondeductible, but the interest earned is tax-free if distributed for one of the qualifying reasons under distributions. The contributions must stay in the IRA for five years before it achieves tax-free status on the earnings.

• must have earned income
• income limitations apply
• no age limit
• deadline to contribute: April 15 of the following year
• qualifying distributions are age 59 ½ , death, disability, first time home buyer expenses

Education IRA Account

An account created for the purpose of paying the beneficiary's qualified higher education expenses.

• can contribute $2,000 per year per beneficiary
• no contributions after the account holder is 18
• earnings are tax-free if used for qualifying higher education needs
• contributions must be made by April 15 
  

Disclaimer: Early withdrawals may result in a penalty charged by the bank or in a substantial tax penalty under IRS regulations.