A Traditional Individual Retirement Account is a tax advantage account designed to offer you financial security after retirement. If you are covered by an Employer’s Qualified Pension Plan, contributions may be fully or partially tax-deductible, or phased out completely depending on your adjusted gross income. Withdrawals can be made at any time but may be subjected to taxes and penalty. After attaining age 59 ½, distributions can be taken without IRS penalties. Mandatory distributions are required after age 70 ½. IRS final regulations simplified the required distribution process by providing a Uniform distribution period for all individuals of the same age.

A Roth IRA has no maximum age restrictions, is not deductible, and is not subject to mandatory distribution. Eligibility to contribute to a Roth IRA is based on your modified adjusted gross income. Ordering rules for tax and penalty free distributions apply for qualified and non-qualified withdrawals.

Now known as the Coverdell Savings Account (ESA), this account is a trust created exclusively for the purpose of saving for a minor’s education. When used for qualified education expenses, ESAs have the advantage of tax-free distributions. Individuals are eligible to establish and contribute to an ESA subject to income limitations.

Traditional and Roth IRA features and benefits:

• It is a fixed-rate account that’s compounded daily and credited on the last day of the month.
• If you meet eligibility requirements, you can make increased annual contributions, subject to limitations. If you are age 50 or older, you may contribute a catch-up contribution of $500 in addition to the basic annual contribution limit.
• A premature distribution before age 59 ½ may result in a 10% IRS penalty. Bank penalties may apply on withdrawals prior to maturity.
• Any type of interest bearing Savings, CD or Money Market account may be an IRA.
• Earn tax-deferred interest while you accumulate funds. 
• Increased earnings help fight inflation, while growing tax- free.
• A great way to ensure financial security and provide income for retirement.
• 24-hour access for information from Dime Telephone banking.
• Keep track of your IRA by telephone or online. Automated banking for balances
• FDIC insured up to $100,000.

Coverdell Education Savings Account (ESA) features and benefits:

• A fixed-rate account that is compounded daily and credited on the last day of the month
• You can designate up to $2,000 per beneficiary, per year
• Keep track of your IRA with Automated Banking (TABS)
• All contributions are non-deductible
• Earn tax-exempt interest while you accumulate funds
• Distributions used for the designated beneficiary’s “qualified education expenses” are tax exempt
• A unique way to accumulate assets that will be used to pay for qualified education expenses
• An ESA provides savings for qualified elementary, and post secondary education benefits at a public, private, or religious school
• An ESA provides special needs services in the case of a special needs beneficiary
• A great way to save for expenses like tuition, fees, books, and supplies.