Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)
Summary

Instead of flying out of orbit in your old age, prepare for a safe future landing. The best time to save for your retirement is right now, while you're still earning income. IRAs provide tax advantages* that you won't enjoy with other savings accounts.

Astera offers different plans to serve different financial goals: Roth, traditional, and Coverdell Education Savings Accounts. Talk to an Astera representative about our IRA options, and we'll help direct the flight into your golden years.

Details:

  • Tax-advantaged* way to save for retirement
  • Competitive dividends above regular savings rates
  • Minimum balance requirement depends on account
  • No set up or maintenance fees
  • $5,250 contribution limit per year
  • Additional $1,000 "catch-up" contribution for ages 50+
  • Different accounts available for different needs:
  • Traditional offers higher limits and new penalty waiver
  • Roth offers flexibility and no withdrawal requirement at age 701/2
  • Coverdell Education Savings Account to save for post-secondary education for children under age 18
  • Certificates of deposit combine the value of a CD with the tax benefits of an IRA
  • Free Online Banking
  • Free Mobile Banking and Text Banking
  • Free e-statements available
  • NCUA insured up to $250,000
  • Minimum balance to open depends on IRA type
  • Talk to an Astera representative about opening an account today!

*Consult your tax advisor.

Traditional, Roth, Coverdell

Traditional IRA

  • Anyone under age 70½ may open
  • 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

*Consult with a tax advisor

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

Roth IRA

  • 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  • Principal contributions can be withdrawn without penalty*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

*Subject to some minimal conditions.

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

Coverdell Education Savings Account

  • Tax-advantaged* savings account especially for higher education
  • Earn competitive dividends that grow tax-free*
  • Withdrawals are tax-free* when used for qualified medical expenses (tuition, fees, books, board, etc.)
  • Annual contribution limits per child
  • Contributions are not tax-deductible
  • Contributions can be made by anyone up until the child is 18
  • Mandatory distribution of funds when recipient reaches age 30
  • NCUA insured

*Consult your tax advisor.