IRAs

If you’re looking for a great way to save for a long-term goal, then an IRA may be just the savings tool you’re looking for. At Embark, we offer Traditional, Roth, and Coverdell Education IRAs, and you choose which savings plan works best for you. 

If you are a current IRA holder, there are new IRS rollover rules for most IRA plans, effective January 1, 2015.  Please review the amendment, specific to your IRA plan, by clicking on the appropriate link here:  Traditional IRARoth IRA, Coverdell Education Savings

 Here’s a snapshot of what’s available on all our IRA products:

  • Competitive rates
  • No annual fee
  • Get started with as little as $25
  • Dividends are paid at the end of every month

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IRA questions

Questions

Traditional IRA

Coverdell Education Savings Account

Roth IRA
Who can contribute? Anyone with earned compensation and under age 70 ½ Anyone MAGI limitations apply for contributions to ESA Account Anyone with earned compensation MAGI limitations apply for contributions to Roth account
How much can I contribute annually? 5,000, or 100% of earned income, whichever is less Catch up provisions for age 50 and older is $1,000 $2,000 for the benefit of a child up to the age of 18; once the child turns age 18, no additional contributions can be made $5,000, or 100% of earned income, whichever is less. Catch up provisions for age 50 and older is $1,000
What are the tax advantages? Earnings grow tax-deferred until withdrawn Contributions may be tax deductible Tax free earnings for qualified education expenses Earnings are tax free and penalty free for qualified distributions No required minimum distributions
Are there any penalty free  withdrawal requirements? Qualified higher-education expenses. First-time home purchase (up to $10,000). Disability. Qualifying medical expenses. Payment to beneficiaries upon the owner’s death. Payments of health insurance premiums while unemployed for 12 weeks or longer. IRS levy. Qualified reservist distribution. Withdrawals of earnings are tax-free and penalty free for qualified expenses. Funds can be transferred from one child’s account to the account of another child in the family under the age of 30. Regular contributions can be withdrawn tax-free and penalty- free at any time Earnings are tax & penalty free after meeting the 5-year test and one of the following:
- Attain age 59 ½
- Death
- Disability
- First-time homebuyer (up to $10,000). Please call for other penalty free withdrawals.
Who owns and has access to my IRA account? The account must be set up with you as primary owner and only you have access to the IRA account The responsible individual (parent or legal guardian) has access to Coverdell The child is the ESA beneficiary The account must be set up with you as primary owner and only you have access to the IRA account
When do I have to take distributions? At age 70 ½ payment can be deferred to April 1st of the following year By age 30 (can be transferred to eligible family member under the age of 30) Never
Contribution deadlines? April 15 of the following year. If the 15th falls on a weekend, then the next business day. April 15 of the following year. If the 15th falls on a weekend, then the next business day. April 15 of the following year If the 15th falls on a weekend, then the next business day.
* Adjusted Gross Income