Retirement or college — either way, it's a big, ongoing expense. Cover it with a low-cost IRA or ESA.
Traditional IRA
Learn MoreUse For
Tax-advantaged retirement savings1
Contributions
- Tax deductible on state and federal income tax1
- $5,500 contribution limit per year (subject to change)
- Additional $1,000 "catch-up" for ages 50+
Tax Advantages
Earnings are tax deferred until withdrawal (when usually in lower tax bracket)3
Withdrawals
- Withdrawals can begin at age 59 ½
- Early withdrawals subject to penalty2
- Mandatory withdrawals at age 70 ½
Fees
- No setup fees
- No monthly or annual service fees
Minimum Opening Deposit
- $5 minimum deposit to open account
- $500 minimum deposit to open share certificate
Roth IRA
Learn MoreUse For
Tax-advantaged retirement savings (income limits apply)3
Contributions
- Contributions are NOT tax deductible
- $5,500 contribution limit per year (subject to change)
- Additional $1,000 "catch-up" for ages 50+
Tax Advantages
- Earnings are 100% tax free at withdrawal1
- Principal contributions can be withdrawn without penalty1
Withdrawals
- Withdrawals on interest can begin at age 59 ½
- Early withdrawals on dividends subject to penalty2
- No mandatory distribution age
Fees
- No setup fees
- No monthly or annual service fees
Minimum Opening Deposit
- $5 minimum deposit to open account
- $500 minimum deposit to open share certificate
Coverdell ESA
Learn MoreUse For
Set aside funds for your child's education (certain income limits apply)4
Contributions
- Contributions are NOT tax deductible
- Designated beneficiary must be under 18 when contributions are made
- $2,000 maximum annual contribution per child
Tax Advantages
- Withdrawals are tax-free and penalty-free when used for qualified education expenses5
- Dividends grow tax-free
Withdrawals
- The money must be withdrawn by the time he or she turns 306
- The ESA may be transferred without penalty to another member of the family
Fees
- No setup fees
- No annual service fees
Minimum Opening Deposit
$25 minimum deposit to open
1Subject to some minimal conditions. Consult a tax advisor.
2Certain exceptions apply, such as healthcare, purchasing first home, etc.
3Consult a tax advisor.
4Qualified expenses include tuition and fees, books, supplies, board, etc.
5Consult your tax advisor to determine your contribution limit.
6Those earnings are subject to income tax and a 10% penalty.
