Chartway Savings: Individual Retirement Account (IRA)
Traditonal IRA-
It’s never too early or too late to start saving for retirement, and a Chartway Traditional IRA is a convenient and versatile way to do it. Enjoy tax-deferred earnings and possible tax deduction on your contributions. (Please consult your tax advisor.)
Roth IRA-
Afraid you might have started saving too late to reach your retirement goals? A Roth IRA may be just what you’re looking for. You can make tax-free withdrawals of both your contributions and earnings after just five years if used for certain purposes, including a first-time home purchase. Contributions, however, are not tax-deductible.
Coverdell Educational Savings Account-
The sole purpose of this account is to help pay the higher education expenses of the child in your family, including tuition, books and supplies. While contributions are not tax deductible, all money in the account may be withdrawn tax-free when used for qualified educational expenses. Another nice benefit is that contributions can come from anyone, including grandparents and other relatives.
Product Features
Traditional IRA
- Tax-deferred earnings
- Certain contributions are tax-deductible*
- Special penalty free distributions for first time homebuyers and for higher education expenses
- Under age 50 can contribute up to $5,000 per year
- Age 50 and older can contribute uo to $6,000 per year
Roth IRA
- Earnings are tax-free
- Not required to start withdrawals at age 70 ½
- Contributions are not tax deductible
- Under age 50 can contribute up to $5,000 per year
- Age 50 and older can contribute uo to $6,000 per year
Coverdell Educational Savings Account
- Withdrawals are tax- and penalty- free if used for qualified education expenses
- Funds can be transferred from one child’s account to another in the same family
- Contributions are not allowed after child reaches age 18
- Contribute up to $2,000 per year per child
- Contributions are not tax deductible
Requirements
- Must be a Chartway member (have a Prime Share account)
- Must be 18 years of age or older
* Consult your tax advisor