| Savings and Investment | Individual
Powerful savings tools for retirement and much more.
Individual retirement accounts (IRAs) are more flexible than they've
ever been. No longer considered strictly retirement savings tools,
IRAs can also help you pay for college, medical insurance, health
insurance premiums and more. And now, thanks to the biggest tax
cut in 20 years, retirement plans are more powerful. You're eligible
to contribute more to IRAs than ever before.
Columbus Metro offers all three types of IRAs: the traditional
IRA, the Roth IRA, and the Coverdell Education Savings Account.
For each type of IRA, Columbus Metro offers two types of investment
- IRA share account - An IRA share account pays a monthly
dividend on balances of $10 or more and allows you to make additional
deposits at any time, up to the contribution limits established
- IRA certificates - All of our regular certificate options
are also available as IRA certificates. The same terms, the same
rates, the same initial investments--but with the tax benefits
of the IRA plan you select.
For maximum safety, your IRA funds are insured separately from
other funds you have on deposit.
The traditional IRA is a type of retirement plan that has been
in existence since 1975. Traditional IRAs offer tax-deferred earnings
and the possibility of tax-deductible contributions. The ability
to defer taxes on the earnings, and to make withdrawals in a year
when you may be in a lower tax bracket, can mean more after-tax
dollars for your retirement. Refer to our IRA
Comparison Chart for information on eligibility, contributions
Created in 1997 by the Taxpayer Relief Act, the Roth IRA offers
more incentives for retirement savings. Unlike traditional IRAs,
your contributions to a Roth IRA are never tax-deductible. However,
the money in your Roth IRA, including earnings, can be withdrawn
tax-free assuming you meet the plan's requirements. Our IRA
Comparison Chart has more information.
Coverdell Education Savings Accounts
If you're wondering how you'll pay for your child's education,
a Coverdell ESA can be a smart way to save. Although contributions
to a Coverdell ESA are not tax-deductible, withdrawals, including
earnings, are tax-free if used for tuition, books and other qualified
education expenses. Consult the IRA
Comparison Chart for more details.