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| IRA's |
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| Educational Savings |
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An Education Savings Account contributions are non-deductible but the earnings are tax-free and distributions are tax-free if used by the account beneficiary (designated student) for the qualified expenses of kindergarten through 12th grade, college, or trade school.
- Minimum Opening Amount of $100
- Fixed Rate Terms of 1 - 10 years
- Maximum Contribution Per Year is $2,000 for Designated Beneficiary Under Age 18
- Contributions May be Made by Any Individual Whose Modified Adjusted Gross Income Does Not Exceed Certain Levels
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| Roth |
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Contributions to a Roth IRA are not deductible, but if the funds are distributed in a "qualified distribution," they are not subject to federal income tax. Therefore, the earnings on the Roth IRA are generally tax-free.
- Minimum Opening Amount of $100
- Fixed Rate Terms of 1 - 10 years
- Variable Rate Term of 18 Months
- Non-Deductible Contributions May be Made at Any Age According to Income Levels
- Distributions Are Not Required During Life of Owner
- After 5 Years - if qualified - Distribution is Tax Free, Including Earnings
- "Catch-Up" Contributions Apply to People 50 Years and Older. Whereby Additional IRA Contributions can be Made Over and Above the Maximum Limits
| Maximum Contribution Limits |
| Tax Year |
Single |
Married Filing Jointly |
| 2010 - 2011 |
$5,000 + COLA* |
$10,000 + COLA* |
*Cost of Living Adjustment (COLA) is made in $500 increments. |
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| "Catch-Up" Contribution Limits |
| Tax Year |
Single |
| 2010 - 2011 |
$1,000 |
| "Catch-Up" contribution apply to individuals who have reached age 50 by year-end. |
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| Traditional |
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A Traditional IRA offers tax-deferred growth of your contributions and earnings. Upon distribution of this IRA after age 59 1/2, your deductible contributions and earnings are fully taxable as ordinary income. Must have earned income or received alimony and are younger than 70 1/2.
- Minimum Opening Amount of $100
- Fixed Rate Terms of 1 - 10 years
- Variable Rate Term of 18 Months
- Tax Deductible Contributions Based on Tax Filing Status and Modified Adjusted Gross Income
- Distributions Must Start at Age 70 1/2
- "Catch-Up" Contributions Apply to People 50 Years and Older. Whereby Additional IRA Contributions can be Made Over and Above the Maximum Limits
| Maximum Contribution Limits |
| Tax Year |
Single |
Married Filing Jointly |
| 2010 - 2011 |
$5,000 + COLA* |
$10,000 + COLA* |
*Cost of Living Adjustment (COLA) is made in $500 increments. |
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| "Catch-Up" Contribution Limits |
| Tax Year |
Single |
| 2010 - 2011 |
$1,000 |
| "Catch-Up" contribution apply to individuals who have reached age 50 by year-end. |
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See our Truth in Savings Regulation DD Disclosure for further information.
The above IRA information provided is based on current interpretation of the Taxpayers Relief Act of 1997. You should seek competent tax and legal advice concerning your specific situation. |
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