Roth IRA
Traditional IRA
Coverdell Education Savings Account
INDIVIDUAL RETIREMENT ACCOUNTS
Use one of our Individual Retirement Accounts to prepare for the future, starting with as little as $100. Choose between a ROTH IRA or one of several TRADITIONAL IRA’s, depending on your tax situation. If you would like to transfer part, or all, of an existing IRA from another institution to Curtis State Bank, we can help you. Please note the following guidelines as you decide:
Roth IRA
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Contributions are never deductible
» Earnings are tax-free
Contributions can usually be distributed at any time
» Distributions are not required to be taken at age 70 _.
» Earnings can be distributed tax-free if at least 5 years ago AND one of the following:
Attaining age 59 _
Becoming disabled
First home purchase
Death (payment is to beneficiaries)
Distributions are not required to be taken at age 70 ½.
Traditional IRA
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Contributions are usually 100% tax deductible
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Earnings grow tax deferred
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Distributions are required to be taken by Traditional IRA holders beginning at age 70 _.
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Distributions are generally taxable, but are penalty free if taken under one of the following circumstances:
Attaining age 59 _
Becoming disabled
Payment for certain health insurance, medical expenses, and higher education expenses
Payment for a first home purchase
Death (payment is to beneficiaries)
The annual contribution limits for either a Roth or a Traditional IRA are as follows:
| 2005 | $4000 |
| 2006 | $4000 |
| 2007 | $4000 |
| 2008 | $4000 |
If you are over the age of 50, you are eligible to make a “Catch-up Contribution” in addition to the contribution limit for that year. They are:
Go to our
RATES page to check the Annual Percentage Rate (APR) and Annual Percentage Yield (APY).
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COVERDELL EDUCATIONAL SAVINGS ACCOUNT
It is never too early to start saving money for college expenses, so why not make it as advantageous as possible for your college-bound child? By planning ahead, you can make an informed decision about your child’s future education expenses. The minimum to start an ESA is $100.
This plan allows for a total after-tax contribution of $2,000 per year for each child until they reach the age of 18, and can be contributed from almost anyone. The contributions and their earnings are then tax-free when withdrawn to pay for qualified education expenses.
A qualified education expense is one that is required for the enrollment or attendance at an eligible educational institution. Qualified expenses include tuition, fees, books, supplies and equipment. If the designated beneficiary of the Savings Account has completed their education and there are funds remaining, the remaining funds can be rolled over to another eligible member of the family.
Compare our RATES for Educational Savings Accounts.
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