Compare IRA Accounts
No setup, administration or annual maintenance fees are charged on Star One IRA Accounts.
| Traditional IRA Account | Roth IRA Account | Coverdell Education Savings Account (ESA) | |
|---|---|---|---|
| Qualifications: | Must have earned income and not have reached age 70½ by the end of the year. | Must have earned income. There are no age restrictions. | The designated beneficiary must be an individual under the age of 18. The age-18 limitation will not apply to any designated beneficiary with special needs. |
| Maximum Contributions: |
2019: |
2019: |
2018-19: $2,000 per beneficiary (ESA contributions do not count against IRA contribution limits) |
| Tax Status of Earnings: | Tax-deferred until withdrawal | Earnings grow tax-deferred. Tax-free on qualified withdrawals | Earnings grow tax-deferred. Tax-free on qualified withdrawals |
| Nonrefundable Tax Credit: | Up to $2000 for certain individuals—income requirements apply | Up to $2000 for certain individuals—income requirements apply | Not applicable |
| Contribution Restrictions: | None if you are under age 70½ and have earned income. However, if you are an active participant in an employer retirement plan, your contribution may not be deductible (See tax-deduction section below). |
Yes, 2019 contributions phase out between $122,000 - $137,000 for singles and $193,000 - $203,000 for married couples. Married filing separate phase out: $0 - $10,000 2018 contributions phase out between $120,000 - $135,000 for singles and $189,000 - $199,000 for married couples. Married filing separate phase out: $0 - $10,000 |
Yes, 2018 - 2019 contributions phase out between $95,000 - $110,000 for single tax filers and $190,000 - $220,000 for joint tax filers.
|
| Tax Deduction: | Yes (See Traditional IRA Tax Deduction explanation chart below) | No | No |
| IRS Penalties for Early Withdrawal: | None if: - Over 59 ½ - Death or disability - Qualified medical expenses - Certain health insurance - Qualified college expenses - 1st time home purchase (up to $10,000) - Due to IRS levy |
None if: - Over 59 ½ - Death or disability - Qualified medical expenses - Certain health insurance - Qualified college expenses - 1st time home purchase (up to $10,000) - Due to IRS levy |
None if: - For payment of qualified education expenses |
| Required Distributions: | Must begin by April 1 following year participant turns 70 ½ | Only after death of the participant | Must be completed 30 days after beneficiary reaches age 30 (except for special needs children) or death |
| Contribution Age Limit: | Not allowed after the year age 70 ½ is attained | None | Not allowed after attaining age 18 except for special needs children |
Traditional IRA Account Tax Deduction
Contributions up to the limit are fully tax-deductible if you are not an active participant in an employer-sponsored retirement plan.
If you are an active participant and a single tax filer, your deductibility phase-out range for tax year 2019 is $64,000 - $74,000, up from $63,000 to $73,000 in 2018.
If you are married and filing a joint return, your deductibility phase-out range for tax year 2019 is $103,000 - $123,000, up from $101,000 to $121,000 in 2018.
Note: For an IRA contributor who is not an active participant and is married to someone who is an active participant, the deductibility phase-out range is $193,000 - $203,000 for 2019 and $189,000 - $199,000 for 2018.
IRA Information and Help
- Printable IRA and ESA brochures in PDF format
- Call us and ask to speak to one of our IRA Specialists
- Read the IRA Account Disclosure