IRA Savings Accounts
Put a deeper shade of gold into your retirement savings plan.
What type of retirement lifestyle do you dream of? Whether it's more travel, exploring volunteer opportunities, kicking back, or a combination of many choices, you can save for those goals through Clearview's IRA Savings Accounts. These IRAs pair well with your other long-term investments and any employer-sponsored 401(k) plans, helping you build a secure financial future. As always, speak with your tax advisor to get full details of an IRA's tax implications.
- Contribute up to $7,000 per year ($8,000 if over age 50).
- Choose from Traditional IRAs and Roth IRAs, along with Coverdell Education Savings Accounts.
- Traditional IRA contributions may be tax-deductible, and taxes must be paid on withdrawals.
- Roth IRA contributions are not tax-deductible, but qualified withdrawals are tax-free.
- Existing Traditional IRAs can be converted to Roth IRAs.
- Early withdrawal penalties apply.
- Visit Retirement Central to read more about your IRA options.
Coverdell Education Savings Account
When it comes to securing your child’s or grandchild’s educational future, a Coverdell ESA is a smart and versatile choice. This account not only supports college savings but also allows you to plan ahead for primary and secondary education expenses, including private school. It’s a thoughtful way to ensure their educational needs are met at every stage.
- Contribute up to $2,000 per child, per year, until the child reaches age 18.
- Contributions can be made regardless of participation in any other IRA programs.
- All contributions to the Coverdell ESA are non-deductible.
- Earnings may be withdrawn tax-free if used to pay for qualified education expenses before the student reaches age 30.
- Contributions can be made through payroll deductions, periodic deposits, or automatic transfers.
- Education accounts operate under the same terms and conditions as our Traditional and Roth IRA savings accounts.
- Choice of Traditional and Roth IRA savings accounts
- Tax advantages
- Education savings option
Know this before you open an IRA Savings Account
What is an IRA Savings Account?
IRA savings accounts are similar to regular savings accounts in that they are NCUA-protected and earn interest. However, IRAs have annual contribution limits—$7,000 if you're under 50 and $8,000 if you're 50 or older in 2024—and differ in tax treatment: traditional IRAs offer tax-deferred growth, while Roth IRAs involve paying taxes upfront but allow for tax-free withdrawals.
How does an IRA Savings Account work?
You deposit funds into your chosen account type, Traditional or Roth IRA and watch your retirement savings grow overtime with added tax benefits. With a Traditional IRA, you might get a tax break now, but you'll pay taxes when you withdraw the money in retirement. With a Roth IRA, you pay taxes on the money you put in, but your withdrawals in retirement are tax-free.
What is the difference between a Traditional IRA and a Roth IRA?
For a Traditional IRA, contributions must come from earned income and be made by April 15th of the following year; they may be tax-deductible and have limits that vary by age and year. Withdrawals before age 59½ incur a 10% IRS penalty, and distributions must begin at age 73. Dividends are credited and compounded quarterly, and are tax-deferred until withdrawn. There are no age or income restrictions for contributing, as long as you have earned income from a job.
For Roth IRA's, contributions must be made by April 15th of the following year for the current tax year and are not tax-deductible, with limits varying by age and income. Dividends are credited and compounded quarterly and can be tax-free upon withdrawal if certain conditions are met. Contributions can be withdrawn anytime without penalty, and earnings can be withdrawn tax-free if the IRA has been open for at least 5 years and one of these conditions applies: reaching age 59½, becoming permanently disabled, or using up to $10,000 for a first-time home purchase.
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