Individual retirement accounts (IRAs) are tax-smart, long-term savings plans that allow you to save for retirement. Unison offers three different types: Traditional, Roth and SEP IRAs. Unison also offers an education savings account (ESA).

For information on contribution limitations, distributions and more;

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Traditional IRA
With a Traditional IRA, contributions may be tax deductible (see your tax consultant). Dividends are tax-deferred until withdrawal. Qualified withdrawals include turning age 59-1/2, first time home purchase, post-secondary education, disability, long-term insurance premium or death.

Contribute up to $5,000 or 100% of earned income each year, whichever is less. If you are 50 years old or older, you can contribute up to $6,000 for 2011.

Basically, Traditional IRAs work well if you want the tax deduction right now, but you are required to receive minimum distributions starting at age 70-1/2 and every year after.

Roth IRA
Contributions to a Roth IRA are not tax-deductible. Instead, after age 59-1/2 and after the IRA has been held for five years, withdrawals on earnings are tax-free and can be made at any time for any amount. Until that time, qualified withdrawals on earnings can be made for first-time home purchase, disability or death. Withdrawals of contributions can be made at any time.

Basically, Roth IRAs work great if you don’t need a tax break right now. They offer more flexibility than a Traditional IRA because you can withdraw regular contributions at any time and you are not required to receive distributions when you reach age 70-1/2.

SEP IRA
Self Employed Pension Plans (SEPs) function the same as Traditional IRAs. SEPs are long-term savings plans specifically for the self-employed and for small business owners who want to make contributions for their employees. The amount deposited in SEPs does not affect the maximum that can be deposited into Traditional and/or Roth IRAs.

Coverdell ESA
Coverdell education savings accounts (ESAs) are tax-smart, long-term savings plans that allow you to save for educational needs (elementary, secondary and post-secondary). Deposit a maximum of $2,000 per child each year. Although contributions are not tax-deductible, withdrawals for qualified expenses are tax-free until age 30. Qualified expenses include tuition, fees, books and equipment required for enrollment. Certain room and board expenses may also apply.

Benefits:

• Earnings and/or withdrawals may be tax-free or tax-deferred. (Each IRA is subject to its own rules and regulations.)
• The great rates will help you reach your retirement or education goals.