Traditional IRAs
“I’m in a higher tax bracket, and expect to be in a lower bracket after I retire. Let’s pay taxes later.”
Compare IRA Accounts
IRAs and ESAs help you build wealth, save for college, or provide financial security in retirement while providing tax-advantaged ways to save for your goals
We’re here to squeeze value out of your dollar, not your dollars out of you. No setup, administration or annual maintenance fees are charged on Star One IRA and ESA Accounts.
ROTH IRAs
“I’m young/youngish, in a lower tax bracket, and want tax-free legacy wealth. Let’s pay taxes now.”
Coverdell Education Savings Account (ESA)
“I want to save money tax-deferred for college or K-12 expenses.”
Learn more about IRAs and ESAs
| Traditional IRA Account | Roth IRA Account | Coverdell Education Savings Account (ESA) | |
| Qualifications | Must have earned income. No age restrictions. | Must have earned income. No age restrictions. | The designated beneficiary must be an individual under the age of 18. The age limitation will not apply to any designated beneficiary with special needs. |
| Maximum Contributions | 2024: $7,000 2025: $7,000 Plus $1,000 "catch-up" contribution (if age 50 or over during the year) | 2024: $7,000 2025: $7,000 Plus $1,000 "catch-up" contribution (if age 50 or over during the year) | $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 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, 2025 contributions phase out between $150,000-$165,000 (for singles) and $236,00-$246,000 for married couples. Married filing separate phase out: $0-$10,000. Yes, 2024 contributions phase out between $146,000-$161,000 for singles and $230,000 - $240,000 for married couples. Married filing separate phase out: $0-$10,000. | Yes, 2024-2025 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 - Birth or adoption of a child | 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 - Birth or adoption of a child | None if: - For payment of qualified education expenses |
| Required Distributions | Must begin by April 1, following the year the participant turns 73 | 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 | None | None | Not allowed after attaining age 18 except for special needs children |
Not sure what IRA account to choose?
Your personal finances aren’t always as simple as “this or that.” Call to chat with one of our IRA consultants. They’ll talk you through your options.