Retirement & Education Accounts

You're never too young to start saving for retirement with an IRA! You can also use an ESA to save for education expenses. Interest compounds on these accounts, so the sooner you start saving, the more money you'll have available when you need it later!

There are three different types of accounts: Traditional, Roth, and Education (also called a Coverdell Education Savings Account).

Looking for retirement planning services or other retirement savings options? Consult our subsidiary, Six Pillars Financial Advisors.

 TraditionalRothEducation
Best for Retirement Retirement Qualified education expenses (kindergarten through college or trade school)
Income limit? No Full contributions up to $118,000/yr for singles and $186,000/yr for couples

Phases out at:

$133,000/yr for singles and $196,000/yr for couples
No
Income requirement? Income must be from compensation or self-employment Income must be from compensation or self-employment No
Maximum annual contribution under age 50 $5,500 $5,500 $2,000 per child under 18
Maximum annual contribution over age 50 $6,500 $6,500 n/a
Tax-deductible contributions Tax deferred up to 100% depending on Annual Gross Income and participation in an employer-sponsored retirement plan No No
Tax on earnings Grows tax-deferred until withdrawn Grows tax-free if held for at least five years No
Tax on withdrawn funds Withdrawals are taxed as income No tax on contributions. No tax on earnings after age 59 ½ No (for qualified expenses)
Required minimum distribution or withdrawal Age 70 ½ No Account must be liquidated by Age 30
Withdrawal penalty Most withdrawals before age 59½ result in IRS penalties Most withdrawals before age 59½ result in IRS penalties Funds withdrawn and not used for education expenses will result in IRS penalties
Other n/a n/a Funds can be transferred between accounts for children in the same family

Information effective for 2015 taxes. Consult your tax advisor for your eligibility and best options for your situation.

IRA Rates

Dividends are posted monthly for all IRA accounts.

 Traditional IRARoth IRAEducation IRA
Average Daily BalanceDividend RateAPYDividend RateAPYDividend RateAPY
$50.00 – $9,999.99 0.05% 0.05% 0.05% 0.05% 0.05% 0.05%
$10,000.00 – $24,999.99 0.10% 0.10% 0.10% 0.10% 0.05% 0.05%
$25,000.00 – $49,999.99 0.15% 0.15%; 0.15% 0.15% 0.05% 0.05%
$50,000.00 – $99,999.99 0.25% 0.25% 0.25% 0.25% 0.05% 0.05%
$100,000.00 – $249,999.99 0.30% 0.30% 0.30% 0.30% 0.05% 0.05%
$250,000.00 – $499,999.99 0.35% 0.35% 0.35% 0.35% 0.05% 0.05%
$500,000.00 and above 0.40% 0.40% 0.40% 0.40% 0.05% 0.05%

Looking for a way to save and lock in higher rates? We also offer IRA CDs with flexible term lengths and fixed rates of return.

For more information or to open an account, call 850.488.0035 or 1.800.533.5772 or visit any of our locations.