Armstrong Bank: CDs & IRAs

CDs & IRAs

Certificates of Deposit and Individual Retirement Accounts are great ways to save your money while putting it to work earning more. Click on each one to learn more:

Certificates of Deposit / Individual Retirement Accounts / Coverdell Education Savings Account

Certificates of Deposit (CDs)

Looking for investments with secure, guaranteed returns? Our Certificates of Deposit let you choose the terms, from 91 days to 4 years, with fixed interest rates based upon the rate at the time of purchase. Your interest can be paid monthly, quarterly, or annually. Automatically renewing CD's allow a 10-day grace period after the maturity date for withdrawals, additions to the CD, or changes in term without penalty.

Individual Retirement Accounts (IRAs)

Description	Annual Contribution Limits	Deductibility
Traditional IRA
Deductible or Nondeductible Retirement Account for Individual that earns tax-deferred income.	100% of Earned income or $5000/per person, whichever is less.	See your tax or legal professional for assistance in determining IRA deductibility.
Roth IRA
Nondeductible Retirement Account for individuals that earn tax-free income if left in for at least 5 years and meets qualified distributions: over 59 1/2 death disability first-time homebuyer exception	100% of Earned income or $5000/per person whichever is less, less any contributions made to a Regular IRA. Contribution is phased out if MAGI is over $116,000 for Single Taxpayers, $169,000 for Married Taxpayers.	Contributions to a Roth IRA are never deductible.
Coverdell Education Savings Account (CESA)
Nondeductible contribution made to an IRA for educational purposes and earns tax-free income.	$2,000/per child per year. This contribution does not affect the Regular or Roth contribution. Contribution is phased our if MAGI over $110,000 for Single Taxpayers or $220,000 for Married Taxpayers.	Contributions to a CESA are never deductible.

An IRA is an investing tool that serves as an "Individual Retirement Account." There are several types of IRAs such as Traditional IRAs and Roth IRAs.

Traditional and Roth IRAs are established by individual taxpayers, who are allowed to contribute 100% of compensation (self-employment income for sole proprietors and partners) up to a set maximum dollar amount. Contributions to the Traditional IRA may be tax deductible depending on the taxpayer's income, tax-filing status and coverage by an employer-sponsored retirement plan. Consult your tax advisor. Roth IRA contributions are not tax-deductible.

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