IRA's

IRA : Individual Retirement Account
Save For Your Golden Years

Our IRA Accounts are accumulation accounts that provide you with a competitive return and no principal risk (on balances $250,000 and less). Dividends are paid monthly and credited to your account on the 1st day of the following month. In addition, there are no administration or annual fees associated with our IRA accounts.

First Class offers the following types of IRAs:

• Traditional IRA Accounts
• Roth IRA Accounts
• Coverdell IRA Accounts

Traditional IRA

A traditional IRA brings you significant up-front tax advantages, and with less money taken out for taxes, the power of compound earnings is strengthened.

With a Traditional IRA:

• Earnings accumulate tax-deferred
• Contributions are tax-deductible if you qualify
• The amount you can contribute may increase

What is a Traditional IRA?

A Traditional IRA is a type of retirement plan that has been in existence since 1975. Traditional IRAs offer tax deferred earnings and the possiblity for tax-deductible contributions. These tax advantages make the traditional IRA a powerful tool in creating a balanced, long-term savings plan.

Roth IRA

Roth IRAs offer unique and exciting savings opportunities, and they've gotten better over the years. Roth IRAs give many members an easy and safe way to plan for the future.

With a Roth IRA:

• Contributions are allowed at any age
• Qualified distributions are tax-free
• Flexible withdrawal options are available
• The amount you can contribute may increase

What is a Roth IRA?

A Roth IRA is an individual retirement account created by the Taxpayer Relief Act of 1997. Named for former Senate Finance Committee Chairman William Roth, Jr., this IRA offers more incentives to boost your retirement savings, as well as more ways to use your nest egg.

Coverdell Education Savings Account
Formerly the Education IRA

What is a Coverdell Education Savings Account (ESA)?

The Taxpayer Relief Act of 1997 created the Education IRA, now known as the Coverdell ESA. Its sole purpose is to help you pay for your child's education expenses, such as tuition, fees, books, supplies, equipment, and in some cases, room and board and computers. These options were improved by the Economic Growth and Tax Relief Reconciliation Act of 2001.

The main benefits of a Coverdell ESA include

• Unlike state 529 plans, Coverdell ESA's can be used to pay for qualified elementary and secondary education expenses
• Earnings grow tax-free if distributions are used for qualified education expenses

Remember, it's never too late to start planning your retirement.

For more information or to setup your account today, call or stop in!