IRA Accounts

An "IRA" is an Individual Retirement Account, a type of savings account designated by the Federal Government as a means of saving for retirement.

Anyone that has earned income (sweat-of-the-brow income) can contribute to his or her IRA or to an IRA for his or her spouse.

Fixed and variable rate individual retirement plans are available.

The current types of IRA at IRA include Traditional, Roth, and Coverdell Educational Savings Account. These funds may be invested in either the IRA Accumulator Investment or the IRA Investment Certificate. The total of all IRA investments in the same name is one IRA account. Maximum deposit amounts and withdrawal requirements cover an individual's total IRA investments in all financial institutions.

HSA Account

Health Savings Accounts are emerging as a preferred option for saving for health care costs. They operate much like an IRA in that it is pre-tax money that helps members pay for services not covered in their health plans.

Benefits of HSA Accounts:

• Members can claim a tax deduction for contributions they make to the HSA and the interest or other earnings on the account are tax free.
• The contribution will remain in the account from year to year until the member needs them. Unspent balances will remain in the account until spent. There is no "use it or lose it rule".
• Contributions can be made by the member's employer, the account owner, or anyone else on behalf of the owner.
• Contributions made by the employer are not tax deductible.
• Distributions may be tax free if they are used for a qualified medical expense.
• Accounts can be opened as a savings or checking account with debit card access.

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IRA & HSA