Type of Account	Description
Traditional IRA	A Traditional IRA lets you take advantage of tax-deferred earnings and possibly provide you with yearly deductions on your taxes.*  With a Traditional IRA, you don’t pay taxes on your earnings until you withdraw them at retirement, when you’re most likely in a lower tax bracket.  All individuals under the age of 70½ who have earned income can participate in this type of IRA.  There are income limits that determine eligibility for tax deductions.  If you have more questions about a Traditional IRA, please contact a Hoosac Bank Customer Service Representative.
Roth IRA	A Roth IRA is a flexible way to save for your retirement.  With a Roth IRA, contributions aren’t deductible; however, earnings are free from federal taxes when you meet certain conditions.  Additionally, with a Roth IRA you can access your account without IRS penalties and continue to save for retirement past age 70½.
SEP (Simplified Employee Pension) IRA	A SEP is a smart way for small businesses and self-employed individuals to save for retirement.  With a SEP IRA, you don’t pay taxes on your earnings until you withdraw them at retirement; at that time, you are most likely in a lower tax bracket.  A SEP is easy to start and maintain, providing a flexible way to save for retirement.
Coverdell Education Savings	A Coverdell Education Savings account is a great way to save for a student’s education.  This account offers tax and penalty free earnings when you use the funds to pay expenses of your child’s education.  Parents aren’t the only ones who can contribute to this type of account – grandparents, aunts, uncles, other relatives and friends can also contribute.