Individual Retirement Accounts (IRAs)

Advantages of Traditional vs. Roth IRAs

There are advantages to both traditional and Roth IRAs. One of the biggest 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

• No income limits to open
• No minimum contribution requirement
• Contributions are tax deductible on state and federal income tax¹
• Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59½
• Early withdrawals subject to penalty²
• Mandatory withdrawals at age 70½⁴

Roth IRA

• Income limits to be eligible to open Roth IRA³
• Contributions are NOT tax deductible
• Earnings are 100% tax free at withdrawal¹
• Principal contributions can be withdrawn without penalty¹
• Withdrawals on dividends can begin at age 59½
• Early withdrawals on dividends subject to penalty²
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income

¹Subject to some minimal conditions. Consult a tax advisor.

²Certain exceptions apply, such as healthcare, purchasing first home, etc.

³Consult a tax advisor.

⁴The Required Minimum Distribution (RMD) age is 73 for tax years 2023 and later, and it will increase to 75 for those born in 1960 or later, starting in 2033. The first RMD must be taken by December 31 of the year you turn 73, or you have the option to delay until April 1 of the following year, but then you must take a second RMD by December 31. 

Cover college expenses with a Coverdell ESA.

Help your student prepare for college. A Coverdell ESA provides a safe, tax-free place to build savings early for education expenses — free of setup and annual fees.

• Set aside funds for your child’s education
• No setup or annual fee
• Dividends grow tax-free
• Withdrawals are tax-free and penalty-free when used for qualified education expenses¹
• Designated beneficiary must be under 18 when contributions are made
• To contribute to an ESA, certain income limits apply²
• Contributions are not tax deductible
• $2,000 maximum annual contribution per child
• The money must be withdrawn by the time he or she turns 30³
• The ESA may be transferred without penalty to another member of the family
• $500 minimum deposit to open

¹Qualified expenses include tuition and fees, books, supplies, board, etc.

²Consult your tax advisor to determine your contribution limit.

³Those earnings are subject to income tax and a 10% penalty.

Conveniently access and manage your IRA online with the ability to complete the following transactions:

• Request a rollover or transfer from another institution to GPO
• Add a deposit to your account
• Take a distribution from your account
• Set up automatic distributions from your IRA
• Update your IRA beneficiaries

Log into Superior IRA Online

*To access your account online, you must have a valid email address on file with GPO. If you experience any issues creating your account or logging in, please contact us at (315) 724-1654, Option 2, and a member of our team will be happy to assist you.