IRAs
When
you invest in a Premier Source Individual Retirement Account (IRA),
you are putting your money with people you trust in any environment
that is safe and secure. At Premier Source, an IRA is something every
member can afford. Contact us to begin saving with a Premier Source
IRA.
Traditional IRAs
A Traditional IRA lets you lower your taxable income while saving for the future. With a Traditional IRA, your contributions are fully or partially tax-deductible, depending on your income and tax-filing status. The earnings grow tax-free until withdrawal. (Please consult your tax advisor for more information on the rules for Traditional IRAs.)
A Traditional IRA at Premier Source can be structured as a Share Savings account or as a 12-month, fixed rate certificate. IRA certificates require a minimum deposit of $1,000. IRA Share Accounts may be opened with as little as $15, with ongoing contributions added to your account through Direct Deposit. View more information.
Roth IRAs
With a Roth IRA, your contributions are not tax deductible, but you may withdraw contributions tax-free at any time. Your earnings grow tax-free, and you may withdraw interest earned free of any taxes and penalties if you hold the account for five years and are buying your first home, or if you are 59 1/2. (Please consult your tax advisor for more information on the rules for Roth IRAs.)
A Roth IRA at Premier Source can be structured as a Share Savings account with a variable rate of interest or as a 12-month, fixed rate certificate. IRA certificates require a minimum deposit of $1,000. IRA Share Accounts may be opened with as little as $15, with ongoing contributions added to your account through Direct Deposit. View more information.
Coverdell Education Savings Accounts (ESAs)
ESAs (formerly known as Education IRAs) are flexible accounts that allow you to save for a child's qualified educational expenses, including college, private high school tuition, and after-school tutoring. Relatives and friends can contribute to an ESA for your child. Contributions are not tax-deductible, but earnings accumulate tax-free, and distributions are tax-free if they are used to meet qualified education expenses. (Please consult your tax advisor for more information on the rules for ESAs.)
ESA certificates require a minimum deposit of $1,000. ESA Share Accounts may be opened with as little as $15, with ongoing contributions added to your account through Direct Deposit. View more information.
Traditional IRAs
| Minimum amount to open a traditional IRA | You may open an IRA with as
little as $10. You may contribute through direct deposit
. |
| IRA certificates or share IRA account. | Check current rates. |
| Age limit for contributions | You may contribute up to but not including the year you reach 70 1/2. |
| Income limits | Your earned income must
at least equal your IRA contributions. (You must earn
at least $5,000 a year to contribute $5,000 to your
IRA, for example.) Income limits affect the deductibility of contributions. |
| Tax-deferred earnings | Yes. Earnings grow tax-free until withdrawal. |
| Tax-free earnings | No. Earnings are taxed upon withdrawal. |
| Tax-deductible contributions | Yes. Contributions to a Traditional IRA may be fully or partially deductible, depending on your tax-filing status, your modified adjusted gross income and your participation in employer-sponsored retirement plans. |
| Maximum annual contributions | The maximum contribution
is $5,000 for individuals under age 50 and $6,000 for
individuals age 50 and above. Your maximum annual contribution will depend on your tax-filing status and your maximum adjusted growth income. |
| Distributions | Investors must take required minimum distributions (RMDs) beginning in the year they reach age 70 1/2. |
| Withdrawal penalties | If you withdraw funds
before retirement, your withdrawal will be subject to
federal income tax. State and local taxes may also apply.
In addition, your withdrawal may be subject to a 10% penalty tax unless you meet certain requirements and make withdrawals for certain qualified purposes, such as a first-time home purchase, qualified education expenses or some medical expenses. |
Roth IRAs
| Minimum amount to open a Roth IRA | You may open an IRA with as little as $10. You may contribute through direct deposit. |
| Investment types | Certificates accounts or share IRA accounts. Check current rates. |
| Age limit for contributions | There is no maximum age limit for contributing. |
| Income limits | Your earned income must
at least equal your IRA contributions. (You must earn
at least $5,000 a year to contribute $5,000 to your
IRA, for example.) Your tax-filing status and modified adjusted gross income determine your maximum contribution to a Roth IRA. |
| Tax-deferred earnings | Yes. Earnings grow tax-free until withdrawal. |
| Tax-free earnings | Yes. Earnings are tax-free if you: hold your account for at least five years, or are 59 1/2 years old or older upon withdrawal, or meet special IRS exceptions. |
| Tax-deductible contributions | No. Contributions to Roth IRAs are not tax-deductible. |
| Maximum annual contributions | The maximum contribution
is $5,000 for individuals under age 50 and $6,000 for
individuals age 50 and above. Your maximum annual contribution will depend on your tax-filing status and your maximum adjusted growth income. Your ability to contribute is phased out gradually. |
| Distributions | Unlike traditional IRAs, distributions are not required at age 70 1/2. |
| Withdrawal penalties | You may withdraw your contributions tax-free and penalty-free at any time. You may withdraw interest earned free of any income taxes and IRA penalties if you meet the following requirements:
A 10% penalty tax and/or ordinary income tax may apply in certain circumstances. Funds may be withdrawn and made payable to a beneficiary upon the owner's death without penalty. Funds may be withdrawn and made payable to the owner upon disability without penalty. |
Coverdell Education Savings Accounts (ESAs)
| Minimum amount to open a ESA | You may open an ESA with as little as $10. You may contribute through direct deposit. |
| Investment types | Certificates accounts or share IRA accounts. Check current rates. |
| Age limit for contributions | The maximum annual contribution
is $2,000 per beneficiary. Individuals may contribute to more than one ESA in any given year. The combined contributions to any child's ESAs cannot exceed $2,000 per year. You may contribute $2,000 to an individual ESA even if you contribute to a Traditional IRA or Roth IRA. |
| Income limits | Anyone who meets federal income requirements can contribute to an ESA. |
| Tax-deferred earnings | Yes. Earnings grow tax-free until withdrawal. |
| Tax-free earnings | Yes, earnings are tax free if used to pay for qualified education expenses. |
| Tax-deductible contributions | No. Contributions are not tax-deductible. |
| Withdrawals | Earnings that are withdrawn
for purposes other than qualified education expenses are
subject to ordinary income tax and a 10% penalty tax.
Earnings that are withdrawn after the beneficiary reaches age 30 are subject to ordinary income tax and a 10% penalty tax. |
