CDs & IRAs
Certificates of Deposit (CD)
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Higher Yield – Short & Long Term Savings Option
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A type of savings product requiring a fixed minimum term.
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The funds must remain on deposit for a set period of time.
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Withdrawals prior to maturity could result in a penalty.
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3 month to 10 year terms
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Low $500 minimum
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Interest can be automatically transferred to another Willow Financial account
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CDs automatically renew (unless cancelled) at maturity for same term at prevailing rates
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CDs may be redeemed seven calendar days following maturity date. After seven calendar days your account will renew.
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FREE online account access - viewing only
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Also Available: 9-Month No Penalty CD - $500 minimum – penalty free after first 7 days. (You can withdraw any time during day 8 through 270 with no penalty). Interest is compounded daily.
Rates
Click here to view our Deposit Rates
Individual Retirement Arrangement (IRA)
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Commonly called an Individual Retirement Account
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Tax-sheltered retirement plan introduced in 1974 to help supplement retirement income
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Available to anyone who received earned income (taxable compensation) during that year
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Contributions can be made any time up to and including the due date of your tax return for the previous year, normally April 15th
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Children who work and earn taxable income may also contribute to an IRA; parents or grandparents may contribute to the funds, as well, as long as gifts do not exceed the allowable gift tax exclusion
Traditional IRA
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Contributions are tax-deferred until withdrawal (usually at retirement)
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CDs available from 3 month to 10 year terms
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Open with as little as $500
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Interest is credited quarterly
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Contributions generally tax deductible*
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FREE online account access - viewing only
*Consult your tax advisor for details on deductibility
Roth IRA
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Interest on contributions accumulates tax-free
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Qualified withdrawals at retirement are tax-free
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Contributions are not tax-deductible
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CDs available from 3 month to 10 year terms
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Open with as little as $500
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Interest is credited quarterly
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FREE online account access - viewing only
Money Market IRA Accounts Also Available
New Tax Law Maximum Contributions
Tax Year Maximum Contribution
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2005-2007 $4,000 for single and $8,000 for married couples filing jointly
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2008 $5,000 for single and $10,000 for married couples filing jointly
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2009 & after Cost-of-Living Indexing
Catch-Up Contributions: Workers 50 and older can make additional contributions above the max limit
Retirement Rollovers
Direct Rollover (more favorable)
Indirect Rollover (less favorable)
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Employer sends and makes the distribution check payable to the employee and is required to withhold 20% for payment to the IRS
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The remaining balance must be deposited into a retirement account within 60 days to avoid additional taxes and/or penalties
It's never too early to start planning for retirement. We can help you to establish the retirement plan that is best for you. We offer a variety of retirement planning arrangements, including Traditional and Roth IRAs. If you are retiring or changing jobs, call us and consult with our IRA specialist at 610-995-1700 before making any decision that could cause negative tax consequences.
Education Savings Accounts
Coverdell Education Savings Accounts (ESAs) began in 1998 as Education IRAs. An ESA is an education savings plan (as opposed to a retirement savings plan), created exclusively for saving to pay for qualified education expenses of the designated beneficiary. The contribution and distribution rules for ESAs are different from IRA rules. Distributions not in excess of amounts spent on qualified education expenses are generally tax-free.
A contributor may make an ESA contribution (e.g., parent) for a designated beneficiary (e.g., child). The annual ESA contribution limit is $2,000 per child. This includes contributions to all the child’s ESAs from all sources. ESA contributions are neither deductible nor reported on the contributor’s federal income tax return.
Alternative Retirement Investment Options
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