Traditional, Roth, and COVERDELL ESA(Education IRA) Share Certificates are available. Share Certificate Rates or IRA Share Rates

Traditional IRA-is an account that allows you to defer taxes on your earnings until they are withdrawn. Also, certain contributions may be tax deductible in the year they are made. Share Certificate Rates or IRA Share Rates

• The maximum annual Traditional IRA contribution is $3,000  for 2002, $4,000 in 2005 and $5,000 in 2008 per individual.
• You must begin withdrawing funds by April following the year you turn 70 1/2.
• The 10% penalty for withdrawing IRA funds will be waived if you are over 59 1/2, Death or disability, Qualified medical expenses, Certain health insurance, Qualified college expenses, 1st time home purchase (up to $10,000), Due to IRS levy.
• You must pay taxes on any money withdrawn.
• Contributions up to the limit are fully tax deductible if you are not an active participant in a retirement plan.  Otherwise, phaseout rules apply.

Roth IRA-Created as part of the Taxpayer Relief Act of 1997 and originally called The American Dream IRA, the new Roth IRA has a lot of people excited. The Roth IRA is an account that features tax-free withdrawals for certain distribution reasons after a five-year holding period.  Share Certificate Rates or IRA Share Rates

• The maximum annual Roth IRA contribution is $3,000 for 2002, $4,000 in 2005 and $5,000 in 2008 per individual.
• Unlike the Traditional IRA, there is no requirement to begin taking distributions at age 70 1/2.
• It has a tax structure unlike any other IRA: contributions are post-tax, but growth is tax-free: once you put your money in, you never pay taxes again.
• It offers simpler distribution requirements: since you have already paid taxes up front, there are no minimum distribution requirements.
• Since withdrawals are not reportable income, they will not affect your adjusted gross income during retirement.
• An individual can contribute the full $2,000 if his/her income is less than $95,000.

COVERDELL ESA (Education IRA)-is an account that allows you to save for any qualified elementary, secondary, and post secondary education.  Share Certificate Rates or IRA Share Rates

• You may invest up to $2,000 a year per child younger than age 18.  Beginning in 2002, the age 18 limitation will not apply to any designated beneficiary with special needs.
• This contribution is not tax deductible. Earnings are not taxed.  Earnings grow tax-free.
• If you take funds out, you pay no taxes on it if it is used for qualified elementary, secondary, and higher-education expenses (such as tuition & fees) before the beneficiary reaches age 30.
• If you do not withdraw funds before the beneficiary reaches age 30, then you will pay taxes plus an additional 10% penalty tax. To avoid this, you may be able to roll over the funds to an Education IRA for another child.
• Like a Traditional IRA and a Roth IRA, no annual fees are applied to an Education IRA.
• You may contribute $2,000 per year in addition to the money you may invest in a Traditional IRA and a Roth IRA.

Call Sally at (302) 999-3787 or Barb at (302) 999-3193 if you need to transfer, rollover, open, or even if you are just considering an IRA.
Call us first! Call us Now! We will Help!