Your future deserves a partner you trust.
It’s a simple, secure foundation for long‑term financial health.
| Feature | Traditional IRA | Roth IRA | Coverdell Education Savings Account (CESA) |
|---|---|---|---|
| Best For | Anyone who wants tax‑deferred retirement growth | Savers who want tax‑free withdrawals later | Families saving for a child’s education |
| Annual Contribution Limits | $6,500 (under 50) • $7,500 (50+) $8,600 | $6,500 (under 50) • $7,500 (50+) $8,600 | $2,000 per year per child |
| Income Requirements | Must have earned income | Must have earned income; income limits apply for high earners | Contributor’s MAGI must be under $110k (single) or $220k (joint) |
| Tax Benefits | Contributions may be tax-deductible; earnings grow tax‑deferred | Contributions are after‑tax; earnings grow tax‑free; withdrawals in retirement are tax‑free | Earnings grow tax‑free; withdrawals tax‑free for qualified education expenses |
| Withdrawals | Taxed as income in retirement | Tax‑free if the account is at least 5 years old and you're 59½+ | Must be used for education or taxes apply |
| Age Requirements | Must start RMDs at age 73 | No RMDs for the original owner | Beneficiary must be under 18 (or special needs) |
| Use of Funds | Retirement only (exceptions apply) | Retirement only (exceptions apply) | Education costs: K–12, college, trade school |
| Who Can Open? | Anyone with earned income | Anyone with earned income (and within income limits) | Anyone contributing on behalf of an eligible child |
| Minimum for Century Federal Accounts | Standard IRA minimums apply | Standard IRA minimums apply | $2,000/year contribution limit |
| NCUA Insured | Yes, up to $250,000 | Yes, up to $250,000 | Yes, up to $250,000 |
Saving for the future is more accessible than you think.
To contribute, you (or your spouse, if filing jointly) must have earned income equal to or greater than the amount you contribute. For full contribution rules, see IRS Publication 590.
If you’re 72 or older, federal regulations require you to take a minimum yearly distribution from your Traditional IRA.
We’re here to help you understand your RMD and stay compliant.
A Coverdell Education Savings Account is designed to help families save for a child’s educational needs, from elementary school through college.
Anyone (including the child) can contribute if their Modified Adjusted Gross Income (MAGI) is:
Up to $2,000 per year per child (beneficiary).
Because education is an investment — and tax‑free growth helps every dollar go further.
The beneficiary must be under age 18, unless they qualify as a special‑needs beneficiary.
For full details and tax guidelines, see IRS Publication 970.
