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Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

Help future-you have more fun.  Start saving with a Benchmark IRA. Let’s find the plan that’s right for you.

Features

  • Competitive interest above standard savings rates
  • Traditional and Roth IRA options; as well as Coverdell ESA
  • No setup fees
  • No monthly or annual maintenance fees
  • $6,000 contribution limit per year
  • Additional $1,000 “catch-up” contribution allowed for ages 50+
  • Funds can be used to purchase certificate within IRA
  • No minimum deposit to open

Traditional vs. Roth…

When do you want to enjoy your tax advantage? A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at the time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70½

Roth IRA

  • Income limits to be eligible to open Roth IRA***
  • Contributions are NOT tax-deductible
  • Earnings are 100% tax-free at withdrawal*
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals on interest can begin at age 59½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

Disclaimer

*Subject to some minimal conditions. Consult a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***Consult a Tax Advisor.

Coverdell ESA…

Sending your child off to college is an adjustment for everyone. Provide a smoother transition by saving early with a Coverdell Education Savings Account (ESA).

  • Set aside funds for your child’s education
  • No setup or annual fee
  • Dividends grow tax-free
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses*
  • Designated beneficiary must be under 18 when contributions are made
  • To contribute to an ESA, certain income limits apply**
  • Contributions are not tax deductible
  • $2,000 maximum annual contribution per child
  • The money must be withdrawn by the time he or she turns 30***
  • The ESA may be transferred without penalty to another member of the family

Disclaimer

*Qualified expenses include tuition and fees, books, supplies, board, etc.

**Consult your Tax Advisor to determine your contribution limit.

***Earnings are subject to income tax and a 10% penalty.

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