Individual Retirement Accounts (IRAs)
An IRA from ECB can save you money now while securing a strong financial future. You earn tax-saving advantages to fund a happy retirement, and your contributions may even be tax deductible today.
We give you several options and a choice of interest rates to meet all your retirement needs. The most important decision, however, is simply the decision to get started.
- Traditional IRA
- No annual fee
- Only $5 minimum deposit to open
- Interest earnings are tax deferred
- Contributions may be tax deductible*
- Interest compounded daily
- Tax penalty may apply for early withdrawal**
- Penalty-free withdrawals begin at age 59½
- Mandatory withdrawals begin at age 70½
- Can rollover funds from 401(k), pension plan, etc.
- FDIC insured
*Consult with a tax advisor.
**Certain exceptions apply, including disability, qualified education expenses, purchasing first home, and others.
- Roth IRA
With a Roth IRA, you retain the ability to withdraw contributed funds while earning tax-free interest. Contributions are not tax deductible, but they are 100% tax free at retirement. You should consult with a tax advisor to see what type of IRA is best for you.
- No annual fee
- Only $5 minimum deposit to open
- Tax free withdrawals as long as qualifications are met.
- Can withdraw your principal without a tax penalty at any time
- Can withdraw interest earnings penalty free at age 59½
- Interest compounded daily
- No mandatory distribution age
- Can rollover funds from 401(k), pension plan, etc.
- Your modified adjusted gross income (MAGI) may not exceed certain limits.
- FDIC insured
- Education IRA
An Education IRA (also known as CESA - Coverdell Education Savings Account) can be established to pay for qualified education expenses. The beneficiary must be under the age of 18 when opened.
- No annual fee
- Interest grows tax free
- Withdrawals are tax free when used for qualified education expenses*
- Funds can be used for college, secondary school, and elementary school expenses
- Interest compounded daily
- Contributions can be made until the child is 18 years old
- Funds must be distributed when recipient reaches age 30
- Contributors do not have to be related to recipient
- Individuals and non-individuals (such as companies or charities) can contribute up to $2,000 per child per year
- FDIC insured
*Qualified expenses include tuition and fees, books, supplies, board, etc.
