Individual Retirement Accounts (IRAs) & Educational Savings Accounts
Flexible savings options with potential tax benefits.
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Whether you're just beginning your retirement journey or looking to supplement an existing employer-sponsored retirement account, an Individual Retirement Account (IRA) can help you save for the future while taking advantage of valuable tax benefits.
At First South Financial, we offer several IRA and Educational Savings Account options designed to help you reach your long-term goals. With competitive rates, flexible terms, and federally insured deposits, you can save with confidence.
Guaranteed Best Rates
If you find a rate better than our industry-leading returns, we'll beat any advertised CD rate from other credit unions or banks.* Take advantage of our Guaranteed Best Rates for terms under 12 months! Earn more and worry less when you save with First South. Learn more.
| Name | Term | Minimum to open | Dividend Rate | Annual Percentage Yield |
|---|---|---|---|---|
| 5 Month Certificate | 5 months | $1,000 | Up to 4.15% | Up to 4.20% |
| 7 Month Traditional IRA | 7 months | $5,000 | 3.55% | 3.60% |
Why Choose an IRA?
An IRA can help you:
- Build retirement savings beyond your workplace retirement plan
- Take advantage of potential tax benefits
- Earn competitive dividends on your deposits
- Prepare for long-term financial security
- Create a retirement income strategy tailored to your goals
Whether you're focused on tax-deferred growth, tax-free retirement income, or saving for education expenses, we have an account to fit your needs.
Traditional IRA
A Traditional IRA is a popular retirement savings option for individuals who want to potentially reduce their taxable income today while growing their retirement savings over time.
Is a Traditional IRA Right for You?
A Traditional IRA may be a good fit if you:
- Want possible tax deductions today
- Expect to be in the same or a lower tax bracket during retirement
- Are looking for additional retirement savings opportunities
- Want to diversify your retirement accounts
With a Traditional IRA, your earnings can continue to grow tax-deferred until withdrawals begin in retirement. Required minimum distributions (RMDs) generally apply according to IRS rules.*
Benefits of a Traditional IRA
- Terms available from 3 to 60 months
- Potentially tax-deductible contributions*
- Tax-deferred earnings growth*
- A simple way to supplement a 401(k) or employer retirement plan
- Federally insured deposits up to applicable limits*
- Competitive dividend rates
Roth IRA
A Roth IRA offers a different tax advantage than a Traditional IRA. Contributions are generally made with after-tax dollars, allowing qualified withdrawals in retirement to be tax-free.*
Is a Roth IRA Right for You?
A Roth IRA may be ideal if you:
- Expect your tax rate to be higher in retirement
- Want tax-free income during retirement
- Prefer not to be subject to required minimum distributions
- Have a long time horizon for retirement savings
Many savers choose a Roth IRA because it provides greater flexibility in retirement and may help reduce future tax liability.
Benefits of a Roth IRA
- Terms available from 3 to 60 months
- Tax-free growth on qualified earnings*
- Tax-free qualified withdrawals during retirement*
- No required minimum distributions during the original owner's lifetime*
- Flexible retirement income planning options
- Competitive rates and federal insurance coverage*
Coverdell ESA (Educational Savings Account)
A Coverdell Educational Savings Account (ESA) is designed specifically to help families save for future education expenses.
Who Should Consider a Coverdell ESA?
A Coverdell ESA may be a good choice for:
- Parents saving for a child's education
- Grandparents contributing toward future educational expenses
- Families looking for additional education savings options
- Individuals seeking tax-advantaged education planning strategies
A Coverdell ESA can be an effective way to prepare for education expenses while potentially benefiting from tax-advantaged growth.
Benefits of a Coverdell ESA
- Terms available from 3 to 60 months
- Dedicated savings for education expenses
- Tax-free and penalty-free withdrawals for qualified education expenses*
- Can help fund college, university, and certain other qualified educational costs
- Federally insured deposits up to applicable limits*
IRA Terms and Savings Options
We offer IRA and ESA certificate terms ranging from 3 months to 60 months, allowing you to choose a savings strategy that aligns with your financial goals and timeline.
Our team can help you compare options and determine which account type best fits your retirement or education savings objectives.
Safety and Security for Your Savings
Protecting your deposits is a top priority. Our IRAs and ESAs are federally insured up to $250,000 per depositor, per ownership category, subject to applicable regulations.* This means your retirement and education savings are backed by a trusted layer of protection.
Frequently Asked Questions About IRAs
What is the difference between a Traditional IRA and a Roth IRA?
A Traditional IRA may allow tax-deductible contributions and offers tax-deferred growth. A Roth IRA uses after-tax contributions, but qualified withdrawals in retirement can be tax-free.*
Can I have both a 401(k) and an IRA?
Yes. Many individuals use an IRA alongside an employer-sponsored retirement plan to increase their retirement savings opportunities.
Are IRA earnings taxed each year?
Generally, earnings in a Traditional IRA grow tax-deferred. Roth IRA earnings may grow tax-free if IRS requirements are met.*
How much can I contribute to an IRA?
Annual IRA contribution limits are established by the IRS and may change each year. Please consult your qualified tax advisor regarding your contribution limits and eligibility.
Can I roll over another retirement account into a First South IRA?
Answer: Yes. You may be able to roll over funds from another eligible retirement account into a First South IRA Certificate. Consult your qualified tax advisor regarding your specific situation.*
How do I open an IRA?
Opening an IRA is simple. Contact our team or visit a local branch to discuss your retirement goals and choose the IRA that best fits your needs.
What can a Coverdell ESA be used for?
Qualified education expenses may include tuition, fees, books, supplies, and certain other educational costs as permitted by IRS regulations.*
Start Saving Today
Whether you're preparing for retirement, supplementing your current retirement plan, or saving for future education expenses, First South Financial has an IRA or ESA solution to help you achieve your goals.
Contact us today or visit your nearest branch to get started.
* Consult a qualified tax advisor regarding your specific tax situation. IRA, Roth IRA, and Coverdell ESA eligibility, contribution limits, withdrawals, and tax treatment are subject to IRS rules and may change. Federal insurance coverage is subject to applicable regulations and limits.
*Offer valid only for currently advertised rates of commercial banks headquartered in our local markets. We will beat a qualifying competitor's rate on the same term and deposit amount by 0.05%. If we are unable to beat the competitor's rate, we will provide a $25 incentive. Competing CD or IRA must match the same term and deposit amount as our current CDs and IRAs. Tangible proof of rate, term, and deposit amount is required. Penalties for early withdrawal and other restrictions may apply. Please consult your tax advisor regarding eligibility to open an IRA. Cannot be combined with other offers. Offer subject to change or withdrawal without notice. Please see us for complete details. Federally insured by NCUA.
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