Use an IRA to fund your bucket list!
- Competitive Interest
- No Setup Fees
- Potential Tax Advantages1
- Competitive interest above standard savings rates
- Traditional IRA, Roth IRA, and Coverdell ESA options
- No setup fees
- No monthly or annual maintenance fees
- $6,500 contribution limit per year
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Contributions may be tax deductible1
- Funds can be used to purchase CDs or Savings accounts within an IRA
- $50 minimum deposit to open to open a variable rate Savings account
- $100 minimum deposit to open a variable rate/term account
- $1,000 minimum deposit to open a fixed rate/term account
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.
- No income limits to open
- No minimum contribution requirement
- Contributions are tax deductible on state and federal income tax2
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59 ½
- Early withdrawals subject to penalty3
- Mandatory withdrawals at age 73
- Income limits to be eligible to open Roth IRA1
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal2
- Principal contributions can be withdrawn without penalty2
- Withdrawals on interest can begin at age 59 ½
- Early withdrawals on interest subject to penalty3
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
A Simplified Employee Pension (SEP) plan provides business owners with a simplified method to contribute toward their employees' retirement as well as their own retirement savings.
- Retirement plan for small businesses funded by the employer
- Contributions are made to the IRA of each eligible employee
- Must cover qualifying employees
- Contribution limit is the smaller of 25% of compensation or up to $66,000 (2023 tax-year)
- Company or owner gets tax deduction
- Deadline for contributions is the tax due date plus extensions
- Required Minimum Distribution (RMD) rules apply
Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (CESA) provides a tax-free safe place to grow competitive dividends and also financial confidence for a new stage in life.
- Set aside funds for your child's education
- No setup or annual fee
- Interest grows tax-free
- Withdrawals are tax-free and penalty-free when used for qualified education expenses4
- Designated beneficiary must be under 18 when contributions are made
- To contribute to an CESA, certain income limits apply5
- Contributions are not tax deductible
- $2,000 maximum annual contribution per child
- The money must be withdrawn by the time he or she turns 306
- The CESA may be transferred without penalty to another member of the family
- $1,000 minimum deposit to open if funds go into a CD
- $100 minimum deposit to open if funds go into an IRA variable 1½ year CD
- $50 minimum deposit to open if funds go into an IRA Savings account
1Consult a tax advisor.
2Subject to some minimal conditions. Consult a tax advisor.
3Certain exceptions apply, such as healthcare, purchasing first home, etc.
4Qualified expenses include tuition and fees, books, supplies, board, etc. Fidelity Bank limits the transactions that can be made on savings accounts to no more than six (6) automatic or preauthorized transfers per monthly statement cycle. This includes account transfers or payments initiated by telephone, mobile banking, online banking, as well as automatic debits and transfers. An item fee of $10 per withdrawal in excess of six (6) per monthly statement cycle will be applied. See the Rules Governing, Truth in Savings Disclosure and Fee Schedule for more information.
5Consult your tax advisor to determine your contribution limit.
6Those earnings are subject to income tax and a 10% penalty.
IMPORTANT INFORMATION: The content of this page is informational only. Accounts are subject to approval. Other miscellaneous fees apply. The terms of the accounts, including any fees or features, may change. See the Account Agreement, Electronic Funds Transfer Disclosure and Agreement, Funds Availability Policy Disclosure, Substitute Check Policy Disclosure, Fee Schedule for the terms and conditions associated with these products.