An Individual Retirement Account provides you with an investment and often provides you with an immediate tax deduction. Gateway offers three types of IRA's:

Traditional IRA

Roth IRA

Educational (Coverdell ESA) IRA

See below for current IRA Dividend rates.

The sooner you set up an IRA, the sooner your money starts growing. Don't forget that your spouse can generally have an IRA too!

Traditional IRA's

Traditional IRA's offer qualified taxpayers a tax deduction today and tax deferred growth. You may set up an IRA for both you and your spouse. Your contributions to a Traditional IRA are limited to a maximum of $3000 per tax year. Withdrawals are taxable when taken at retirement (past age 59 ½) but you will generally be in a lower tax bracket. Traditional IRA's may allow early withdrawals without a penalty.

(Please contact Gateway for more information regarding the terms, conditions, and the rules for a Traditional IRA; consult your tax advisor for information regarding deductibility, early withdrawal penalties, and taxability at withdrawal).

Roth IRA's

Roth IRA contributions are made from your taxable income and are not deductible in the current tax year. However, your contributions grow tax free and are generally tax free at withdrawal (past age 59 ½) subject to certain restrictions. Your contributions to a Roth IRA are limited to a maximum of $3000 in 2004 with higher limits in later years. Roth IRA's allow limited withdrawals under certain conditions without penalty.

(Please contact Gateway for more information regarding the terms, conditions, and rules for a Roth IRA; consult your tax advisor for information regarding deductibility, early withdrawal penalties, and taxability at withdrawal).

Educational IRA'S ("Coverdell Education Savings Account")

Contributions to an Educational IRA may be made by parents, grandparents, or other relatives of children under age 18 subject to a maximum of $2000, per year, per child. Contributions and earnings are generally free from taxation when used for qualified elementary, secondary, and higher education expenses.

Please contact Gateway for more information regarding the terms, conditions, and rules for a Coverdell ESA IRA; consult your tax advisor for information regarding deductibility, early withdrawal penalties, and taxability at withdrawal).

Current IRA Dividend Rates

Effective Date:8/24/05
 
Deposit / Share IRA Accounts:
Required Minimum Balance Annual Percentage Yield Dividend Rate

$25.00

1.0046%

1.00%

IRA Certificates of Deposit:
Term Required Minimum Balance Annual Percentage Yield Dividend Rate
6   Months $1000.00 2.50%   2.47%  

12 Months

$1000.00

3.00%

2.96%

24 Months

$1000.00

2.75%

2.91%

36 Months $1000.00 3.00%   2.96%  

Notes:

All rates are compounded on a Daily Basis and paid to the account on the first of every month.

All Dividend Rates shown are subject to change.

Please contact us to obtain additional information concerning account terms, conditions, fees, and rates. A summary of our Truth in Savings Disclosure document for Share accounts is available for viewing on-line.