A fee-free savings account designed just for retirement. A traditional IRA is an account that allows you to defer taxes on your earnings until they are withdrawn. Also, certain contributions may be tax deductible in the year they are made. Check with your tax preparer for deductibility.
The Roth IRA is an account that features tax-free withdrawals for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, members who expect to be in a higher tax bracket when they retire may benefit more from a Roth IRA than from a Traditional IRA. Unlike the Traditional IRA, there is no requirement to begin taking distributions at age 70 1/2.
Whether your child is starting college next year or in 18 years, there’s no denying it will come with a hefty price tag. And there’s no easier way to start than with a Clov Financial Educational Savings Account. This IRA is available in a Savings account and Share Certificate account; distributions are tax-free and penalty-free for qualified expenses.