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Individual Retirement Accounts (IRAs)

We believe that you should reap the benefits of your working life. An IRA from Woodland Bank is a great way to start saving for your future retirement. Whether you want to travel the country, attend every Vikings game, or just spend quality time with your family, our IRAs will help make your goals a reality. And with two savings options that both offer significant tax benefits,* you can’t go wrong.

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Traditional IRA vs. Roth IRA

There are advantages to both traditional and Roth IRAs. One of the main differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • Tax-deferred earnings
  • Contributions may be tax deductible
  • Typically best option when rolling over your pension or 401(k)

Roth IRA

  • Contributions are not tax deductible
  • Tax-free earnings
  • Tax-free qualified withdrawals
  • Typically more flexible access to funds than traditional IRA
Coverdell ESA

Higher education can become a financial burden. A Coverdell Education Savings Account (ESA) is designed to help lighten the load.

  • Set aside funds for your child's education
  • Dividends grow tax-free*
  • Withdrawals are tax-free and penalty-free when used for qualifying education expenses*
  • Typically designated beneficiary must be under 18 when contributions are made
  • To contribute to an ESA, certain income limits apply*
  • Contributions are not tax deductible
  • Contributions are allowed regardless of traditional or Roth IRA participation
  • $2,000 maximum annual contribution per child
  • Typically the money must be withdrawn by the time he or she turns 30
  • The ESA may be transferred without penalty to another eligible member of the family

*Consult a tax advisor.