Traditional IRA
No income limits to open
No minimum contribution requirement
Contributions are tax-deductible on state and federal income tax*
Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
Withdrawals can begin at age 59 ½
Early withdrawals subject to penalty**
Mandatory withdrawals at age 70 ½
Roth IRA
Income limits to be eligible to open Roth IRA***
Contributions are NOT tax deductible
Earnings are 100% tax free at withdrawal*
Principal contributions can be withdrawn without penalty*
Withdrawals on interest can begin at age 59 ½
Early withdrawals on interest subject to penalty**
No mandatory distribution age
No age limit on making contributions as long as you have earned income
*Subject to some minimal conditions. Consult a tax advisor.
**Certain exceptions apply, such as healthcare, purchasing a first home, etc.
***Consult a tax advisor.

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 expenses*
Designated beneficiary must be under 18 when contributions are made
To contribute to an ESA, certain income limits apply**
Contributions are not tax deductible
$2,000 maximum annual contribution per child
The money must be withdrawn by the time he or she turns 30***
The ESA may be transferred without penalty to another member of the family
*Qualified expenses include tuition and fees, books, supplies, board, etc.
**Consult your tax advisor to determine your contribution limit.
***Those earnings are subject to income tax and a 10% penalty.