Deposits

Investment Accounts

Money Market Deposit Account

• Earn a higher yield than a Share Savings Account
• Funds may be withdrawn without penalty
• Dividends are earned and paid monthly
• Minimum balance of $2,500 is required

  Certificates of Deposit

• Customize the terms of your investments ranging from 6 months to 84 months
• Term deposit accounts typically earn higher interest rates than other accounts
• Dividends are earned and paid monthly
• Minimum balance of $1,000 is required on a CD over 12 months and $2,500 is required on a CD under 12 months

Individual Retirement Accounts

Traditional IRA

• Dividends are tax-deferred until withdrawal
• Most annual contributions may be tax-deductible
• Required to start withdrawing money after age 70½

Roth IRA

• Annual contributions are not tax-deductible
• More flexible features
• Not required to start withdrawing money after age 70½

When you withdraw the dividends, you pay no taxes if the funds have been in the account at least five years and have one of the following conditions:

• You are over 59½ years of age or
• You become disabled or
• You are a first time homebuyer (up to $10,000 maximum withdrawal)

Coverdell ESA

The Coverdell Education Savings Account (ESA), formerly known as an Education IRA, is a trust or account in the name of the student. Unlike a 529 Plan, which is only designed to pay for postsecondary education expenses, the ESA can be used to pay for elementary and/or secondary (high school) education.

• The maximum contribution is $2,000 per year
• Contributions must be made in cash before the student's 18th birthday and distributed within 30 days after the student's 30th birthday
• The contributor gives up ownership of the funds to the student
• Contributions made are not tax-deductible, but will appreciate tax free until distributed; Distributions will be tax-free if used for qualified education expenses
• In the EFC calculation, ESAs are handled the same as a 529 Plan
• ESAs can be opened at almost any bank or financial institution approved by the Internal Revenue Service (IRS).

The maximum amount that a contributor can deposit is dependent upon his modified adjusted gross income (MAGI): Less than $110,000 for single tax filers; less than $220,000 for those filing jointly. Your tax professional will be able to determine your contribution limit.

If withdrawals are made for any reason other than to pay for qualified education expenses, the income portion is taxed at the student's rate plus an additional 10% penalty tax.

Visit http://qcu.collegepayway.com for complete program details.

Because of the complexity of these financial products, it's in your best interest to consult a tax advisor.