Retirement Accounts (IRAs)

Nobody wants to work until they're 90. The best strategy is to start saving early.

An IRA is the perfect solution towards affording the ability to enjoy your relaxation years. GeoVista IRA plans can be set up easily and provide exceptional tax benefits*—putting you one step closer to that prime spot on the fishing pier.

Summary
  • Tax-advantaged retirement savings
  • Competitive dividends above standard savings rates
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • $5,000 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase share certificates within IRA
  • $100 minimum deposit to open

*Consult a tax advisor.

Traditional vs. Roth

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution in any year allowing flexibility
  • 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
  • Members under age 70½ may contribute $5K maximum per year

Roth IRA

  • No minimum amount to set up
  • Adjusted gross income must be less than $125,000 to contribute ($183,000 for joint filers)***
  • 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  • Principal contributions can be withdrawn without penalty*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 70½ age limit on making contributions as long as you have earned income

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

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

***As of 2012; IRS may change figure annually.

Coverdell Education Savings

It's no secret that college tuition is on the rise, making the prospect of paying for your children's education all the more daunting and reiterating the need to start saving early.

With a Coverdell ESA you're establishing a tax-free safe place for your children's education.

Summary

  • No setup or annual fee
  • Dividends grow tax-free
  • Withdrawals are tax-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
  • NCUA insured

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

**Consult your tax advisor to determine your contribution limit.

Retirement Accounts (IRAs)

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