Investment Accounts

IRAs

Will you be able to do the things you've always dreamed of when you retire? An Individual Retirement Account (IRA) can help. An IRA is a self-sponsored retirement savings plan. Think of it as a pension plan with tax advantages. There are several different kinds of IRAs but we offer:

Traditional IRA

A Traditional IRA is an invaluable financial tool for the purpose of saving and investing for retirement. With a Traditional IRA, your maximum annual contribution of $5,000* grows tax-deferred until you withdraw the funds at age 70-1/2 penalty free.

Roth IRA

A Roth IRA is a powerful way to help you plan for and enjoy your retirement. Like a Traditional IRA, Roth IRAs allow annual contributions up to $5,000*. However, Roth IRA contributions are not tax deductible, but your money grows tax-free.

Which IRA will you choose?

* Maximum annual contribution is $6,000 if you are 50 or better. Not intended as tax advice. Please consult a tax professional.

IRA Share Certificate

A Share Certificate is similar to savings account in that they are insured and thus virtually risk-free; they are "money in the bank" (Share Certificates are insured by the NCUA for credit unions). They are different from savings accounts in that the Share Certificate has a specific, fixed term (often three months, six months, or one to five years), and usually, a fixed interest rate. It is intended that the Share Certificate be held until maturity, at which time the money may be withdrawn together with the accrued interest. There are no fees on Share Certificates, but a penalty is charged for early withdrawal.

IRA Share Certificates offer:

• Variety of investment terms from twelve months to five years
• Competitive Interest Rates
• Dividends Paid Quarterly
• Deposit up to $5,000 per year of earned income

Coverdell Education Savings Accounts

Preparing for your child's college education can be an intimidating process. We all hope that our children will make the decision to continue their education after high school but know that if they do, most will need our help paying the bills. Tuition, books, lodging and other expenses can really add up. That's where a Coverdell Educational Savings Account (CESA) can help.

CESA was created as an investment tool to assist you in saving for future tuition payments and other expenses that are incurred while kids attend qualified education institutions. CESA allows a maximum annual contribution of $2,000 and all withdrawals are tax-free as long as the proceeds are used to pay for qualified expenses. Qualified expenses include:

• Tuition and Fees
• Room and Board - if the student is enrolled at least part time
• Books and Supplies - including computer equipment and Internet access costs.

For more information on any of our Investment Accounts contact a Trona Valley Representative at 307-875-9800 or 800-331-6268.