Individual Retirement Accounts (IRAs)
It's never too early or too late to start saving for retirement. Salal makes it easy to create a tax-deductible and tax-deferred retirement account with traditional and Roth IRAs available. IRAs can be invested in IRA savings and/or IRA certificates. This brochure may help you better understand your IRA options.
- Traditional
With traditional IRAs your earnings are tax-deferred until you withdraw the funds at retirement. Your earnings are then taxed at your current income rate.
- Annual contributions are potentially tax deductible*
- You can still make an IRA investment even if you have other retirement investments
- Earnings are tax deferred until withdrawal
- Withdrawals can be made without penalty once you reach 59½
- Mandatory withdrawals begin when you reach 70½
- Other withdrawals may also be penalty-free, such as first time home buying, disability, or higher education.
This brochure provides additional information about traditional IRAs.*
*Consult with your tax advisor for eligibility requirements and contribution limits on IRAs.
- Roth
You invest in Roth IRAs with after-tax income, meaning you pay tax on your contributions now, but your earnings are tax free at withdrawal.*
- Contributions are not tax deductible
- Pay no income tax upon withdrawal
- You may withdraw contributed funds at any time without penalty
- Earnings can be withdrawn penalty-free at age 59½
- No mandatory withdrawals at age 70½
- You may continue contributions beyond age 70½
For more information on Roth IRA eligibility, click here.
Still have questions? More answers may be found here.
*Consult with your tax advisor for eligibility requirements and contribution limits on IRAs.
- Education
While not really IRAs in the traditional sense, education IRAs (also called Coverdell Education Savings Accounts) are very useful. Contributions go into a custodial account for the benefit of a child to pay his or her future education expenses.
- Interest grows tax free
- Withdrawals are tax free when used for qualified education expenses*
- Maximum annual contribution of $2,000
- Beneficiary must be under 18 at time of opening
- Beneficiary does not have to be a relative
- Can be used for public or private schools
- Can be used for college, high school, grade school, etc.
Read this brochure for additional information regarding Coverdell Education Savings Accounts.
*Qualified expenses include tuition and fees, books, supplies, room and board, uniforms.
