IRA/HSA/ESA
Specialized savings accounts like an Individual Retirement Account Education Savings Account or Health Savings Accounts can help you plan ahead to pay for specific expenses.
Individual Retirement Account
An IRA allows for pre-tax contributions to earn interest at a competitive rate.
Target Market:
For customers looking to earn interest on funds saved for retirement.
Fees:
No monthly maintenance fee. $10 annual trustee fee (per IRA customer) and $25 closing fee (complete transfers or premature withdrawals)
Statement:
None
Details:
Minimum deposit of $25 to open. This is a variable interest rate IRA. See account disclosure or IRA resource page for more information.
Features and Benefits:
- Tiered interest rates
- Earn a better interest rate for higher balances
- No penalty for early withdrawals (IRS penalties may apply)
- Freedom to access funds when needed
Complementary Products and Services:
- Personal Checking
- Personal Savings
- Money Market Account
- Online Banking
- Touch Tone Teller
- ESA, HSA
Education Savings Account
A savings account established to pay for education expenses. The contributions are not tax deductible. Earnings are tax-deferred and the distributions are tax-free if used to pay for qualified education expenses.
Target Market:
Individuals with children or grandchildren under age 18.
Fees:
$10 annual trustee fee (per ESA customer)
$25 closing fee (complete transfers or premature withdrawals)
$10 excess contribution fee (if First Federal must withdraw the excess)
Statement:
None
Details:
Minimum deposit of $100 to open. Must be used for qualified educational expenses. See account disclosure or ESA resource page for more information.
Features and Benefits:
Target Market:
Individuals with children or grandchildren under age 18.
- Deposits and withdrawals can be made at any time (subject to ESA rules/guidelines)
- Flexibility to use funds when needed for qualified education expenses
- Annual contributions may be made until the child turns 18
- Allows time to save for education expenses
- Qualified education expenses include elementary, secondary and college expenses
- Ability to use funds for all levels of education
- Contributions may be made by any relative or non-relative
- Any person can help a child with education costs (income limits may apply)
Complementary Products and Services
- Personal Checking Account
- Online Banking
- Certificates of Deposit
- Personal or Kids Savings
- Mobile Banking with Free Mobile Deposit
- IRA, HSA
Health Savings Account (HSA)
A tax-advantaged account for eligible contributions. Account owners control contributions in and distributions out of this account. Distributions by check, debit card or ATM should be for qualified healthcare expenses in order to achieve tax free earnings on funds. Deposits are tax deductible up to annual contribution limits.
Target Market:
Individuals covered under a High Deductible Health Plan (HDHP) who are not covered by a non-HDHP health care plan, not enrolled in Medicare, and are not claimed as a dependent.
Fees:
No monthly maintenance fee. No account penalties. A fee of $2.50 will be charged for each withdrawal from an ATM not owned or operated by First Federal. Fees will be waived if the ATM is part of the MoneyPass network.
Statement:
Monthly
ATM Access:
Yes
Details:
No minimum opening deposit required. IRS eligibility restrictions apply. See account disclosure or HSA resource page for more information.
Features and Benefits:
- No restrictions on source or number of contributions
- Anyone can contribute to your HSA
- ATM/Debit Card
- Universally-accepted way to make easy payments and access funds
- No “use it or lose it” provision
- HSA funds always belong to the beneficiary
- After age 65, funds can be withdrawn for non-medical expenses (subject to ordinary income tax)
- HSA can double as a tool for long-term investment after age 65
Complementary Products and Services
- Personal Checking Account
- Online Banking
- Personal Savings
- Mobile Banking with Free Mobile Deposit
- IRA, ESA
- Touch Tone Teller