Traditional IRA (Individual Retirement Account)+
A traditional IRA is a type of retirement plan that has been in existence since 1975. Traditional IRAs offer tax-deferred earnings and the possibility for tax-deductible contributions. These tax advantages make the traditional IRA a powerful tool in creating a balanced, long-term savings plan. You can contribute to a traditional IRA if you earn compensation and you will not reach 70 1/2 by the end of the year. Earnings in a traditional IRA are not taxed until they are withdrawn. The ability to defer taxes on the earnings and to withdraw in a year when you may be in a lower tax bracket can mean more after-tax dollars for your retirement**. If you meet the eligibility criteria and you are under age 50, you can contribute up to $5,000. If you are age 50 and over, your annual contribution limit is $6,000.
Roth IRA (Individual Retirement Account)+
Unlike traditional IRAs, contributions to a Roth IRA are never tax-deductible. However, the money in your Roth IRA, including earnings, can be withdrawn tax-free. You are eligible to contribute to a Roth IRA if your income is less than a limit set by Congress and you earn compensation. If your income is too high to contribute the annual limit, you may be able to make a smaller contribution. We suggest that you consult your tax advisor for the current income limits**. The annual contribution limit for someone under age 50 is $5,000. The annual contribution limit for someone age 50 or older is $6,000.
|Type||Annual Percentage Yield||Dividend Rate|
|IRA/Roth IRA (Min. $5.00)+||0.050% APY*||0.050%|
+ Min. Amount to earn dividends