- Checking Accounts
- Savings Accounts
- Credit Cards
- Other Accounts
The Consolidated Appropriations Act, Setting Every Community Up for Retirement Enhancement (SECURE) Act, was signed into law in December 2019, and the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law in March 2020.
The changes effective in these two Acts may have impacted your USALLIANCE Retirement Product.
Please contact Deposit Account Services with any questions: (800) 431-2754 ext. 1260.
|Do I qualify?||Yes, if you have eligible compensation||Yes, if you have eligible compensation|
|Are there income restrictions?||No||Yes, please check current IRS regulations|
|Are there contributions limits?||Yes, and they are the same as a Roth IRA. Please check IRS regulations for current limits.||Yes, and they are the same as Traditional IRA. Please check IRS regulations for current limits.|
|Are contributions tax deductible?||Contributions may be tax deductible. Consult a tax advisor.||No|
|When am I required to take distributions?||Mandatory beginning they year you turn age 72 (70½ if you turned 70½ before Jan 1, 2020).||Never|
|Are withdrawals taxable?||Yes, in the year you withdraw||Qualified distributions are tax-free|
|Am I required to make annual contributions?||No
|Can I “catch up”||Yes||Yes|
|What’s the purpose of a Coverdell ESA?||To pay for a child’s (beneficiary’s) qualified educational expense|
|Who can be a beneficiary?||Any child under the age of 18.|
|Which expenses qualify?||Those required for enrollment in an eligible educational institution such as tuition, fees, books, supplies, room and board, equipment and more.|
|Are contributions tax deductible?||No|
|Are there any tax advantages?||Interest earned is tax-deferred until distributed|
|Are there contribution limits?||Yes, please check current IRS regulations|