IRAs / HSAs

IRA's

An Individual Retirement Account is an excellent tool for retirement savings. Depending on the type of IRA you choose, contributions may be tax deductible and will grow either tax-deferred or tax-free! A Coverdell Education Savings Account (formerly Education IRA ) is a great way for parents, grandparents or anyone to set aside funds for the education of a child or loved one. Contact a Relationship Banker at Border Bank for more information about the benefits of IRA's.

Traditional IRA

Allows you to defer taxes on the earnings on your contributions until they are withdrawn. Certain contributions are tax deductible in the tax year for which you make them.*

Roth IRA

Allows only nondeductible contributions and features tax-free withdrawals. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a Traditional IRA.*

Coverdell Education Savings Account

The Coverdell Educations Savings Account is a nondeductible account that features tax-free withdrawals for a very specific purpose-a child's education expenses. Qualified expenses are now expanded to include qualified elementary and secondary school expenses as well as those for higher education.*

Health Savings Accounts

A tax-exempt account established for reimbursing qualified medical expenses for you, your spouse, and your dependents. Contributions to an HSA are fully deductible, the earnings grow tax deferred, and the distributions for qualified medical expenses are tax free. Contributions to your HSA may be made by you, your employer, your family members, and any other person. You may deduct contributions made by anyone other than your employers up to the maximum annual contribution amount.

Basic eligibility requirements* are:

• Must be covered under a high-deductible health care plan
• Must not be covered by any other health plan
• Must not be enrolled in Medicare
• Must not be claimed as a dependent on another person's tax return

Border Bank makes access to your Health Savings Account funds convenient providing complimentary checks and a debit card. Competitive tiered interest rates make the most of your investment dollars while monthly statements help you track your medical expenses. HSAs distributions have specific eligibility qualifications*. $2.00 monthly service fee applies. Closing fees may apply.

* Consult your tax adviser or legal counsel for advice and information concerning your particular situation. HSAs are subject to limitations and/or penalties imposed by the Internal Revenue Service. Representatives of Border Bank may not give legal or tax advice.

For more information contact one of our Personal Bankers.