Retirement & Education Savings

Best if you...

Are a parent or guardian who wants to save for a child’s education

Tax Advantages

• You don’t pay taxes until you take money out of the account
• Tax-free distributions are allowed if used for qualified education expenses

Contribution Limits

• Limit of $2,000 per year, per student total from all contributors
• Beneficiary must be under 18 when contributions are made
• Income limits may apply

Withdrawals / Distributions

• Tax-free distributions are allowed if used for qualified education expenses
• Income tax and a 10% early withdrawal penalty may apply if used for non-qualified expenses
• May withdraw at any time
• Funds must be distributed or transferred to another family member by the time the beneficiary reaches age 30

Fees

None

Best if you...

• Want to reduce taxable income now
• Don’t plan on making withdrawals until retirement

• Want to have more flexibility for withdrawals & reduce taxable income
• Plan to work past age 70

Are self-employed or are a small business owner

Tax Advantages

• You may be able to reduce your current income taxes now
• You don’t pay taxes until you take money out, typically when you are in a lower tax bracket

All earnings grow tax-free, & you don’t pay taxes when you take money out

You don’t pay taxes until you take money out of the account

Contribution Limits

For 2024, you can contribute up to $7,000 ($8,000 if you’re age 50 or older)

• For 2024, you can contribute up to $7,000 ($8,000 if you’re age 50 or older)
• Limits based on tax filing status and income may apply

• For 2023, your employer’s contribution cannot exceed the lesser of: 1) 25% of the employee’s compensation, or 2) $69,000
• Elective salary deferrals and catch-up contributions are not permitted in SEP plans

Withdrawals / Distributions

• Withdrawals are taxable income
• Withdrawals made before age 59 ½ could include a 10% penalty
• Required minimum distributions apply after age 73

• Earnings are tax-free if they’ve been in the account for 5 years and you are at least 59 ½
• Withdrawals made before age 59 ½ could include a 10% penalty
• Contributions are non-deductible and can be withdrawn anytime with no penalty or taxation
• Funds withdrawn early from a certificate may be subject to penalty or taxation

• Withdrawals are taxable income
• Withdrawals made before age 59 ½ could include a 10% penalty
• Required minimum distributions apply after age 73

Fees

Account Closure Fee: $25 if closed within the first year of opening

Account Closure Fee: $25 if closed within the first year of opening

Account Closure Fee: $25 if closed within the first year of opening