Solutions for Individuals

Roth IRA

Allows you to make contributions with after-tax dollars (not eligible for tax deduction). The Roth IRA is designed to allow investment earnings to grow tax-free and provides the opportunity for tax-free withdrawals in retirement. Earnings and qualified distributions are tax-free after age 59½.

Advantages:

• Qualified withdrawals are tax-free
• Investments can compound tax-free
• No required withdrawals at any age

U.S citizens, regardless of age, can open a Roth IRA, assuming their individual Modified Adjusted Gross Income (MAGI) is within allowable limits.

Health Savings Account (HSA)

A Health Savings Account (HSA) allows you to save for current and future medical expenses in a tax-advantaged environment, while potentially reducing your health insurance premiums.

Advantages:

• Potentially lower health care premiums
• Triple tax advantages – possible tax deductions, funds grow tax-deferred, and qualified expenses are tax-free
• Not a “use it or lose it” plan

Coverdell Education Savings Account (CESA)

A Coverdell Education Savings Account (CESA) allows you to save for educational expenses in a tax-advantaged account. Earnings from investments in the account grow tax-deferred and distributions are tax-free when used for qualified expenses.

Advantages:

• Save for higher education
• Save for more than just college – help pay college expenses, in addition to elementary and secondary tuition, as well as books and supplies
• Anyone can contribute to a CESA