IRA Accounts
Save for the future and gain peace of mind with a tax-advantaged IRA.
Traditional IRA Accounts
Grow your nest egg by contributing tax-free dollars that compound over time.
Roth IRA Accounts
Keep more of your hard-earned money and enjoy income that won’t be taxed when you retire.
Coverdell Education Savings Account
Plan for college expenses and enjoy the advantages of compounded savings growth.
Opening an IRA account brings a wealth of advantages that make growing your savings easier. Benefits include:
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Tax Advantages
Enjoy potential tax advantages on your retirement or education savings account.
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Earn More
Watch your money grow faster with dividends compounded monthly.
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Tiered Rates
Take advantage of tiered rates that increase with bigger balances.
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No Minimum Deposit
Open an account today with no required initial contribution.
How Do IRAs Work?
TRADITIONAL IRA—Features tax-deferred earnings and subject to a maximum annual contribution amount set by the IRS.
Members aged 50 and over can make additional “catch-up” contributions. Withdrawals during retirement years are taxable.
ROTH IRA—Contributions are non-deductible. However, you can withdraw tax-free during your retirement years. You can withdraw earnings without a penalty if you meet certain conditions.
The IRS sets a contribution limit based on your income. Members aged 50 and over can make additional “catch-up” contributions.
COVERDELL EDUCATION SAVINGS ACCOUNTS—Ideal to open when children are under the age of 18 to help save for higher education expenses. The IRS sets the maximum contribution. You can make deposits until April 15th of the following year.
Belco IRA accounts feature:
- Compounded and paid monthly dividends
- Rates that are tiered and will therefore increase with higher account balances
- Potential tax deductions and advantages specific to the type of IRA opened (please consult your tax advisor for specific information)
Belco Retirement & Investment Services offers many
other retirement options.
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Open Your Retirement or Educational Savings Account Today
IRA Account FAQs
What is an individual retirement account (IRA)?
An IRA is a personal account designed specifically to save for retirement. You can contribute up to a specified annual limit and the money grows tax-deferred until you retire.
What is the difference between a traditional and a Roth IRA?
A traditional IRA and a Roth IRA both offer potential tax benefits. With a traditional IRA, you make pre-tax contributions. You can deduct these from your taxable income that year. The money grows tax-deferred inside the account. You pay income taxes when you withdraw funds in retirement.
In contrast, a contribution to a Roth IRA uses after-tax dollars without an upfront deduction. You can make qualified withdrawals tax-free since you already paid taxes upfront.
The main factors are your current income tax rate versus the expected rate in retirement. Also, compare if taking the tax deduction now or building tax-free growth until you withdraw the funds at retirement is better for your needs.
How much can I contribute to an IRA annually?
As of 2023, the annual contribution limit for traditional and Roth IRAs is $6,000 if under age 50. Those age 50 and older can contribute an extra $1,000 as a catch-up contribution. For Coverdell accounts, the annual contribution limit is $2,000 per beneficiary.
More Ways to Save and Grow Your Money
Money Market Accounts
Boost savings growth with higher interest rates while maintaining easy access to funds.
Health Savings Account
Save for your healthcare costs tax-free. Every dollar you contribute now funds your medical needs later.
Certificate Accounts
Grow your savings safely with a certificate account. Lock in higher interest rates now for the term you choose.