Homestead Funds offers a comprehensive range of account types, each providing options for individuals and families who are seeking assistance with common financial situations, from saving up for major purchases to creating a nest egg for retirement. Whatever your goal may be, we have the vehicle to help get you there.
An Individual or Joint Taxable Account is a taxable investment account that allows investors to buy and sell investments in the Homestead Funds. An investor may open this account as an individual with sole ownership or with multiple account owners and joint ownership.
Suitable for:
Advantages:
- Flexible distributions
- No annual contribution limit
- Allows for in-kind transfers to eligible recipients for potential tax/estate benefits
Opening Minimum:
$500 (No minimum with regular investments transferred directly from your bank account or paycheck.)
Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.
A Traditional IRA is a tax-advantaged retirement account with annual contribution limits. Distributions are typically taxed and may incur penalties if taken before age 59½. Required Minimum Distributions (RMDs) start at age 72 (73 if you reach age 72 after December 31, 2022).
Suitable for:
Advantages:
- Possible tax-deductible contributions
- Rollovers from qualified retirement plans
- Penalty-free withdrawals for first-time home purchase (up to $10,000 lifetime) and qualified education expenses
- Qualified Charitable Distributions from RMDs for those of RMD age (up to $100,000)
Related Resources:
Opening Minimum:
$200 (No minimum with regular investments transferred directly from your bank account or paycheck.)
Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.
A Roth IRA is a tax-advantaged savings account that allows you to contribute after-tax dollars and potentially withdraw funds tax-free in retirement.
Suitable for:
Advantages:
- Tax-free distributions (if age 59½ and the account is 5+ years old)
- No age limit on contributions
- No Required Minimum Distributions
- Possible penalty-free withdrawals for first home ($10,000 lifetime limit) or qualified education expenses
Related Resources:
Opening Minimum:
$200 (No minimum with regular investments transferred directly from your bank account or paycheck.)
Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.
An Education Savings Account (ESA) is a tax-advantaged investment account that allows families to save for a child’s educational expenses from kindergarten through college.
Suitable for:
Advantages:
- Tax-deferred growth, tax-free withdrawals for eligible expenses
- Beneficiary can be changed to another family member under 30
- Anyone can contribute until the child is 18
Related Resources:
Opening Minimum:
$200 (No minimum with regular investments transferred directly from your bank account or paycheck.)
Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.
A Uniform Gift/Transfer to Minor Account (UGMA/UTMA) is a custodial investment account that allows adults to save and invest on behalf of a minor, with the assets transferring to the child’s control at the age of trust termination in their state.
Suitable for:
Advantages:
- Tax benefits for investment earnings up to certain thresholds
- Anyone can contribute until the child reaches trust termination age
- No contribution limits (federal gift tax rules apply)
Related Resources:
Opening Minimum:
$500 (No minimum with regular investments transferred directly from your bank account or paycheck.)
Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.
A Trust Account is a legal arrangement where a trustee manages assets for beneficiaries, typically set up by an attorney with specific rules governing its operation.
Suitable for:
Advantages:
- May be helpful with estate planning
Opening Minimum:
$500 (No minimum with regular investments transferred directly from your bank account or paycheck.)
Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.
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