Roth IRA
The Roth IRA allows for only nondeductible
contributions. However, the Roth features tax-free withdrawals for
certain distribution reasons after a five-year holding period. That's
the best part of the Roth IRA - you pay no federal taxes on any of
the earnings that your money generates (provided you withdraw the earnings
as part of a qualified distribution).
Qualified distributions are those taken after the five-year holding
period for any of the following reasons: after reaching age 59½,
a first-time home purchase, permanent disability, or in the event of
your death.
Also, because the contributions to a Roth IRA are nondeductible, you
can always get back your principal tax-free and IRS penalty-free for
any reason.
Coverdell Education Savings Account
The Coverdell
Education Savings Account (CESA) is used to pay for a child's educational
expenses. Contributions are nondeductible, but withdrawals are tax-free
provided that the money is used for qualified educational expenses
such as tuition, fees, books, supplies and equipment.
The total aggregate contribution into one or more CESA's on behalf
of a child is $2,000 for a taxable year.
Turn to Us
The above information is just a glimpse of how our IRA products
can help you save for the future. There are numerous reasons to consider
an IRA for your investment needs. Likewise, there are many reasons
to turn to us when making those investments.
Remember that mutual fund companies aren't the only place to invest.
When you invest with us, you're placing your money with people you
trust in an environment where you know your funds are sound and secure.
