An IRA is an arrangement where a working individual  may save up to $4,000.00 annually.  The plan is on a 18 months maturity and can be a fixed or variable rate.  Minimum deposit is $2,000.00 for fixed rate plan, and first deposit must be $40.00 on a variable rate plan.  Eligibility is open to individuals under the age of 70 1/2 who earned salaries or wages.  Distribution can be made at 59 1/2 without penalty.  If you are at least 50 years old you may make an additional $1,000.00 'catch-up' contribution annually.

COVERDELL EDUCATION SAVINGS ACCOUNT
This account is a nondeductible account that features tax-free withdrawals for a very specific purpose - a child's higher education expenses.  

The total aggregate contribution into one or more Education IRA's on behalf of a child is $2,000.00 for a taxable year.  

ROTH IRA
The Roth IRA is a nondeductible 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, people who expect to be in a higher tax bracket when they retire may benefit more from these accounts than from a traditional IRA.

Contact Beth Burton at 606-679-6341 ext. 231 for more information.