Retirement :: Personal Banking

IRA COMPARISON GUIDE

Golden Belt Bank can offer you a variety of ways to help you save for your future with our Individual Retirement Accounts. The chart below will help you determine which retirement plan is right for you.

Product Name	TRADITIONAL IRA	ROTH IRA	COVERDELL EDUCATION SAVINGS ACCOUNT
Contributions	Earned income up to $5000 for tax year 2011 Catch-up contributions of $1000 age 50 or older Tax-deductible Can be made up to age 70^1/2	After-tax earned income up to $5000 for tax year 2011 Catch-up contributions of $1000 at age 50 or older Not tax-deductible Can be made at any age	After-tax earned income up to $2000 for tax year 2011¹ Until the age of 18
Earnings	Tax-deferred	Tax-free	N/A
Withdrawals	Taxable Penalty-free after age 59^1/2 Required minimum distributions by age 70^1/2	Tax-free Penalty-free after account has been open for 5 years and after 59^1/2 No required minimum distribution at age 70^1/2	Tax- free if used for qualified education expenses
Penalty	10% IRS early withdrawal penalty Before age 59^1/2 If required minimum distributions are not taken at age 70^1/2	10% IRA early withdrawal penalty Before 5 year holding period Before age 59^1/2 unless exceptions to penalty apply.	N/A
Penalty Exceptions	Higher education expenses First time home purchase (up to $10,000) Death or disability Certain medical expenses Other exceptions apply	Higher education expenses First time home purchase (up to $10,000) Death or disability Certain medical expenses Other exceptions apply	Tuition Fees Books Supplies Equipment

¹Contributions can be made by any member of the family

Children, grandchildren, stepchildren
Brother, sisters, stepsiblings
Nephews and nieces
Parents, stepparents, and grandparents
Uncles and aunts
Spouses of all the family members listed above
Cousins