Individual Retirement Accounts (IRAs)

We offer Traditional IRAs, Roth IRAs and Education IRAs. Come by and visit with one of our friendly IRA representatives and see which type of IRA is right for you!

IRAs and ESAs Comparison Table

Traditional IRA

The annual contribution limit is $5,000. If age 50 or older, contribution limit is $6,000 (allows for $1,000 catch up contribution). The annual limit applies to any combination of IRA plans other than ESA. Contributions are fully tax deductible if you are not an active participant in an employer retirement plan. Investments grow on a tax-deferred basis. Distributions must begin at age 70 ½. Earnings are taxed only upon withdrawal.


As long as you have earned income, you can establish and contribute to a ROTH IRA even after age 70 ½. While contributions are not tax deductible, contributions and earnings can be withdrawn tax-free, and unlike traditional IRAs, you are not required to begin taking required distributions after reaching age 70 ½. By converting your traditional IRA to a Roth IRA, you can enjoy tax-free withdrawals. However, the amount you convert is subject to income tax now.

Contribution Deadlines

Traditional IRAs, Roth IRAs and Coverdell Education Savings Accounts must be opened and/or funded by the April 15th tax-filing deadline to receive your tax deductions. A filing extension won’t buy you extra time.

Making-Up for Lost Time

Catch-up contributions—individuals who have reached age 50 by the end of the year will be able to make additional catch-up contributions of $1,000 per year to their traditional or Roth IRA.

Coverdell Education Savings Account (ESA)

The annual contribution amount has been increased to $2,000 per beneficiary. While there is no tax deduction for amounts contributed to a Coverdell Education Savings Account, earnings grow tax-free. And your ESA can be used to pay qualified elementary school and secondary school expenses as well as those for higher education


IRAs and ESAs Comparison
  Traditional ROTH IRA Coverdell ESA
Qualifications Must have earned income and not have reached age 70 ½ by the end of the year Must have earned income. There are no age restrictions. The designated beneficiary must be an individual under the age of 18. The age 18 limitation will not apply to any designated beneficiary with special needs.
Maximum Contributions $5,000*  $5,000* $2000 per
                              Beneficiary Contributions do not count against the limits for IRAs            
Catch-UP (50+OVER) $1,000*  $1,000*  
Tax Status Of Earnings Tax-deferred until withdrawal Not taxed. Earnings grow tax-free Not taxed. Earnings grow tax-free
Contribution Restrictions (Based on Adjusted Gross Income) Yes, if active participant in employer retirement plan. Yes, contributions phase-out Yes, contributions phase-out
Tax Deduction Yes. Contributions up to the limit are fully tax deductible if you are not an active participant in a retirement plan. Otherwise phase-out rules apply. No. No.
Penalties For Early Withdrawal None if:
  • Over 59 ½
  • Death or Disability
  • Qualified medical expenses
  • Certain health insurance
  • Qualified college expenses
  • 1st time home purchase (up to $10,000)
  • Due to IRS levy
  • Periodic payments
No. No.
Required Distributions Must being by April following year participant turns 70 ½. Only after death of the participant. Must be complete 30 days after beneficiary reaches age 30 or dies.
Contributions After Age 70 ½ Not allowed. Allowed.


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