Individual Retirement Accounts (IRAs)

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• Save for retirement with tax advantages*
• Competitive dividends above standard savings rates
• Traditional and Roth IRA options available
• Coverdell Education Savings Account available
• No setup fees
• No monthly or annual maintenance fees
• Annual contribution limits apply (see current contribution limits; $6,000 as of 2019)*
• Additional $1,000 "catch-up" contribution allowed for ages 50+
• Funds can be used to purchase CDs within IRA
• No minimum deposit to open IRA shares
• $500 minimum deposit to open IRA CD

Individual Retirement Accounts (IRAs) offer a tax-efficient way to build your retirement savings. Riverview offers a variety of IRAs to meet your needs. Know your IRA options from traditional IRAs, Roth IRAs, and Coverdell Education Savings Accounts (ESAs). 

Traditional IRA 

Choose a traditional IRA if you want the tax deduction right now. It also makes sense if you anticipate paying taxes at a significantly lower rate in retirement. 

• Contribution limits exist
• Eligibility requirements
• Earned income
• Age (under 70½)
• Tax-deferred growth
• Can be converted to Roth IRA
• Contributions are pre-tax, with taxes paid when you withdraw the money
• Early distributions prior to age 59½ may be taken without the IRA
• 10% penalty if funds are used to buy your first home or pay for qualified education expenses
• Contributions are tax deductible on state and federal income tax¹
• Early withdrawals subject to penalty² 

Roth IRA

Choose a Roth IRA if you don't need the tax break right now. It's a more flexible investment because:

• Eligibility requirements
• Earned income
• Income limits (MAGI)
• Investment growth is tax-free when withdrawn as part of a qualified distribution (as defined by the IRS)
• Tax-free growth
• You do not have to take mandatory distributions at age 70½
• You can withdraw regular contributions at any time, tax-free and penalty-free¹
• Early withdrawals on dividends subject to penalty²
• Income limits to be eligible to open Roth IRA³

¹Subject to some minimal conditions. Consult a tax advisor. 

²Certain exceptions apply, such as healthcare, purchasing first home, etc.

³Consult a tax advisor.

We understand that saving for a child's education can be a challenge, especially when trying to balance it with your normal day-to-day expenses and long-term goals like retirement.

The Coverdell Education Savings Account was created to help parents pay for children's education. Coverdell ESAs offer tax-free distributions and, unlike section 529 plans can be used for elementary and high school expenses at most public, private, and parochial schools. 

• Anyone under age 30 can be the beneficiary of a Coverdell. 
• Contributions aren't tax deductible, and they are limited to $2,000 total per year, per child, until the child reaches age 18. 
• You may be eligible for a full contribution ($2,000), a reduced contribution or no contribution at all, depending on your modified adjusted gross income (MAGI) for the year.
• Contributions aren't tax deductible, but withdrawals aren't subject to federal income taxes as long as they are "qualified higher education expenses" like tuition and fees, room and board, and books and required supplies.
• College savings plans can impact a student's eligibility for financial aid. Regardless of whether the Coverdell is owned by either the student or the parent, it's considered a parental asset, which generally has little impact on financial aid.