Traditional IRAs - Saving for the Future
Eligible members can make Traditional IRA deposits and deduct their contributions from their taxable income.  Income taxes, including earnings, are deferred until withdrawal.

Eligibility for a Traditional IRA is based on income and if you are an "active participant" in an employee sponsored retirement plan.  Although there are some exceptions, withdrawals cannot begin until age 59 without serious tax consequences.

Roth IRAs - Planning for Tomorrow
Unlike Traditional IRAs, Roth IRA contributions are not tax deductible.  However, earnings accumulate tax free and may be withdrawn, along with prior deposits, without being taxed if they have remained in the account for at least five years.

Eligibility is still subject to income limitations.  You may have a Roth IRA even if you participate in an employer pension program.

** Note **
The maximum total contribution to both Traditional and Roth IRAs is $5,000 for an individual or $10,000 for a married couple filing jointly.  In addition, those over the age of 50 may contribute an extra $1,000 per year.

Coverdell Education Savings Account (ESA)
The Education Savings Account provides a tax savings vehicle for college education.  Deposits are considered a gift to the beneficiary (a minor) and must be withdrawn for qualified education expenses.

Eligibility is based on the contributor's income and the maximum contribution is $2,000 per year, per beneficiary.  Contributions to Coverdell Education Savings Accounts do not affect the ability to contribute to a Traditional or Roth IRA.

Contributions to a Coverdell Education Savings Account do not affect one's ability to make contributions to a Traditional or Roth IRA.

** Note **
Because of their complexity and the likelihood of changes in tax laws, we recommend that you speak with your personal tax advisor, or our partner Members Financial Services, about eligibility and tax deductibility before making any IRA deposits.

Privacy Policy