INDIVIDUAL RETIREMENT ACCOUNTS (IRAs)
Qside IRAs help you grow your money so it’s there when you need it most. We offer Traditional, Roth and Coverdell Education IRAs, all available as IRA Savings Accounts or IRA Certificates. Whether you’re opening your first IRA or rolling over a 401(k) from a former employer, Qside has an option for you.
With a Traditional IRA, contributions are made prior to income taxes and continue to grow tax-deferred, incurring taxes only when funds are withdrawn. Contributions may also be tax-deductible depending on the owner’s qualifications. This is a great option for individuals who want immediate tax benefits due to its tax-deductible terms, or for individuals who only intend on withdrawing the funds upon retirement (taxes paid upon retirement are typically less because income is usually lower).
Contributions grow tax-deferred; taxes must be paid only when funds are withdrawn. In other words, you pay taxes when you withdraw money, rather than when you contribute.
Contributions are tax-deductable.
Contribution limit is $5,000 (pre-taxes). If you're age 50 and above, the contribution limit is $6,000 (pre-taxes).
Distributions must occur at age 70.5
No withdrawal penalty for members ages 59 ½ and above or for withdrawals involving qualifying education or first home expenses. There are further possibilities to avoid withdrawal penalties.
Eligibility - Income must be equal to or greater than your contribution and will not reach age 70 ½ by year end.
With a Roth IRA, contributions are made after initial income taxes but proceed to grow tax-free. A Roth IRA has fewer withdrawal restrictions than other IRAs and may be of interest to individuals who will need access to their IRA funds sooner than retirement.
Contributions are made after initial income taxes but then grow tax-free and can be withdrawn tax-free (see below).
Contributions are not tax-deductable.
Contribution limit is $5,000. If you're age 50 and above, the contribution limit is $6,000.
Withdrawals are tax-free as long as the Roth IRA has been open for at least five years and: the individual is over age 59 ½, or becomes disabled, or dies and the funds are paid to a beneficiary, or if the money for a first-time home purchase.
No requirements to withdraw money by a certain age, allowing your investment to continue growing tax-free.
Eligibility - Income restrictions apply. No age restrictions.
May convert a Traditional IRA to a Roth IRA.
Coverdell Education Savings Account
Coverdell Education Savings Accounts are designed to help parents and students save for education. Contributions are made after initial income taxes and are not tax-deductible. The investment grows tax-free and withdrawals are also tax free when used for qualifying education expenses.
Contributions are made after initial income taxes but then grow tax-free.
Contributions are not tax-deductable.
Contribution limit is $2,000 (post-taxes) per year, per beneficiary / child.
Withdrawals are tax-free when used for qualifying education expenses (including public / private elementary, secondary and post-secondary schools).
Eligibility - Beneficiary / child must be under 18 years old. Does not apply to beneficiaries / children with special needs.
There are definitely advantages to rolling your 401(k) over into a Qside IRA account, including access to more investment options as well as more direct control over the management of your retirement fund. Review the Qside IRA options above and contact us to start your 401(k) Rollover today.
Click here to apply for an IRA certificate.
To apply for an IRA savings account, simply call a Member Service Representative at (718) 353-1300 and ask us to mail the appropriate IRA application form to you.