Individual Retirement Account (IRA)
The best time to save for your retirement is right now while you're still earning income. An IRA offers tax advantages* to help you meet your financial goals.
We offer different IRAs to serve different needs. Talk to a Harleysville Bank representative about which plan is right for you and your family.
- Save for retirement and enjoy tax advantages*
- Earn higher interest than regular savings
- No setup or maintenance fees
- Annual contribution limits apply
- Annual $1,000 "catch up" contributions allowed for ages 50+
- FDIC insured up to $250,000
- $500 minimum deposit to open
*Consult your tax advisor
Traditional versus Roth
Traditional IRA
- Anyone under age 70½ may open
- Contributions are tax deductible on state and federal income tax*
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty**
- Mandatory withdrawals at age 70½
*Consult with a tax advisor
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
Roth IRA
- Income must be less than $120,000 annually to open ($177,000 for married couples)
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal
- Principal contributions can be withdrawn without penalty*
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest subject to penalty**
- No mandatory distribution age
*Subject to some minimal conditions.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
Coverdell Education Savings Account (CESA)
A Coverdell Education Savings Account (CESA) provides tax-free earnings when the funds are used for a child's education expenses.
There are no age or compensation requirements to open and contribute to a CESA; you do not even need to be related to the child you are contributing for. The interest is 100% tax free and withdrawals can be made at any time when used for qualified education expenses.
- Save for a child's education and have interest grow tax-free*
- Enjoy tax free withdrawals* when used for qualified education expenses**
- Contributions are not tax deductible*
- Annual contribution limits per child apply
- Contributions can be made until the child is 18 years old
- Funds must be distributed when recipient reaches age 30
- Contributors do not have to be related to recipient
- FDIC insured
*Qualified expenses include tuition and fees, books, supplies, board, etc.