IRAs are one of the most valuable savings tools available today. More people than ever before are able to contribute to IRAs and benefit from the great tax advantages. IRAs are no longer just a savings plan to supplement your retirement needs, but can also be used for a first-time home purchase or even qualified college education expenses.
Existing IRA funds can even be transferred from another financial institution or from a company qualified plan into a Red Crown IRA, called an - IRA Rollover.
Red Crown offers 3 types of IRAs:
1. Traditional IRAs
Brings you significant upfront tax advantages with the power of compound earnings strengthened.
- Earnings are tax-deferred.
- Contributions may be tax-deductible, if you qualify.
- Withdrawals are taxable.
For more on the benefits of a Tradional IRA, click here.
2. Roth IRAs
Offers unique and exciting savings opportunities. Roth IRAs give many members an easy and safe way to plan for the future.
- Earnings are tax exempt.
- Contributions are not tax-deductible.
- Qualified distributions are tax-free.
For more on the benefits of a Roth IRA, click here.
3. Coverdell Education Savings Accounts (ESA)
Available to help you pay for your child’s education expenses, such as tuition, fees, books, supplies, equipment, and in some cases, room, board and computers.
- Qualified elementary and secondary education expenses may be paid.
- Earnings grow tax-free if distributions are used for qualified education expenses.