Find your right-fit IRA
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.
Traditional IRA
“I’m in a higher tax bracket, and expect to be in a lower bracket after I retire. Let’s pay taxes later.”
Roth IRA
“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.”
| Annual Percentage Yield (APY) | Dividends Compounded | Dividends Credited | |
|---|---|---|---|
| Qualifications: | Traditional IRA Account Must have earned income. No age restrictions. | Roth IRA Account Must have earned income. No age restrictions. | Coverdell Education Savings Account (ESA) 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: | Traditional IRA Account 2024: $7,000 2025: $7,000 Plus $1,000 "catch-up" contribution (if age 50 or over during the year) | Roth IRA Account 2024: $7,000 2025: $7,000 Plus $1,000 "catch-up" contribution (if age 50 or over during the year) | Coverdell Education Savings Account (ESA) $2,000 per beneficiary (ESA contributions do not count against IRA contribution limits) |
| Tax Status of Earnings: | Traditional IRA Account Tax-deferred until withdrawal | Roth IRA Account Earnings grow tax-deferred. Tax-free on qualified withdrawals | Coverdell Education Savings Account (ESA) Earnings grow tax-deferred. Tax-free on qualified withdrawals |
| Nonrefundable Tax Credit: | Traditional IRA Account Up to $2000 for certain individuals—income requirements apply | Roth IRA Account Up to $2000 for certain individuals—income requirements apply | Coverdell Education Savings Account (ESA) Not applicable |
| Contribution Restrictions: | Traditional IRA Account 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). | Roth IRA Account 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. | Coverdell Education Savings Account (ESA) Yes, 2024- 2025 contributions phase out between $95,000 - $110,000 for single tax filers and $190,000 - $220,000 for joint tax filers. If income exceeds phase-out limit, contributions are not allowed. |
| Tax Deduction: | Traditional IRA Account Yes (See Traditional IRA Tax Deduction explanation chart below) | Roth IRA Account No | Coverdell Education Savings Account (ESA) No |
| IRS Penalties for Early Withdrawal: | Traditional IRA Account None if:
| Roth IRA Account None if:
| Coverdell Education Savings Account (ESA) None if:
|
| Required Distributions: | Traditional IRA Account Must begin by April 1 following year participant turns 73 | Roth IRA Account Only after death of the participant | Coverdell Education Savings Account (ESA) Must be completed 30 days after beneficiary reaches age 30 (except for special needs children) or death |
| Contribution Age Limit: | Traditional IRA Account None | Roth IRA Account None | Coverdell Education Savings Account (ESA) 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.
Speak with an IRA consultant