IRAs
Traditional IRA
Every individual under 70½ who has earned income may contribute part of that compensation to a Traditional IRA. Traditional IRAs offer the advantage of tax-deductibility and you may realize your tax savings up front by deducting the amount of your contribution each year from your federal income taxes, depending upon your income and whether you participate in an employer-sponsored retirement plan, such as a 401(k) plan.
- Contributions may be fully tax-deductible
- Earnings grow tax-deferred until withdrawn
- Early withdrawals can be made penalty-free for qualifying reasons such as higher education expenses, first-time home purchases, qualifying medical expenses and more
Roth IRA
- Contributions are not tax-deductible, but can be withdrawn tax and penalty-free at any time1
- Earnings can be withdrawn penalty-free for the same qualifying reasons as Traditional IRAs
- Earnings are tax-free if the account has been open for five years and withdrawn for a qualified reason
- You are not required to begin withdrawals at age 70½
1 You can make withdrawals any time after a short waiting period after contribution. Withdrawals are limited to six per month.
Educational IRA
- Contribute up to $2000 per year on a child’s behalf
- Contributions are not tax-deductible, but can be withdrawn tax and penalty-free for qualified higher-education expenses
- Funds can be transferred from one child’s account to another in the family
IRA Share Savings Account
Enjoy the tax benefits of an IRA with the flexibility of a savings account with Essential's IRA Share Savings Account.
- Minimum $5 balance to earn above average monthly dividends
- Chat with an Essential representative to assist setting up an IRA or rolling over an existing IRA to Essential
Note: The information on this page is intended to be a reference for our members. It in no way should be taken as investment advice. Consult a tax professional on any tax implications concerning any investments.