An Investment Retirement Account (IRA) is a great place to start saving! Taxes on earnings are deferred until you withdraw funds from the account – letting your investments compound faster.  Here are some of the IRAs offered at Federal Trust. We’ll be happy to help you determine which one is best for you!

Traditional IRA

• Contributions may be tax-deductible, subject to certain limitations.
• A great place to start for anyone under age 70-1/2 who has earned income.
• Minimum to open: $1,000.00
• Contribution deadline: April 15, 2008 for 2007 tax year
• There is no fee to open and maintain an IRA account at Federal Trust Bank. Other transaction or service fees may apply.

Roth IRA

• May offer greater tax savings and withdrawal flexibility than a traditional IRA
• No mandatory annual distribution requirements. No age restrictions. Eligibility depends on income

Coverdell Education Savings Account (Formerly Educational IRA)

• A Coverdell Education Savings Account (ESA) is an account created as an incentive to help parents and students save for education expenses.
• The total contributions for the beneficiary of this account cannot be more than $2,000.00 in any year, no matter how many accounts have been established. A beneficiary is someone who is under age 18 or is a special needs beneficiary.
• Contributions to a Coverdell ESA are not tax deductible, but amounts deposited in the account grow tax free until distributed.
• Distributions are tax free as long as they are used for qualified education expenses, such as tuition, books and fees.