You just got through the most recent tax season and you want to take advantage of better tax benefits for the next year. What options are available for you at BancorpSouth? Let’s take a look:
Line of Credit
For larger purchases, such as home repairs or upgrades, college education expenses, vacations, etc., you may want to consider a line of credit. Not only do these loans provide you with a relatively low rate, the interest on equity products may be tax deductible.* It is important to point out, however, that your home is used as collateral so you will need to be careful with these products.
Individual Retirement Account (IRA)
What makes an IRA such a great retirement savings tool is the special federal tax laws governing the taxation of amounts earned within an IRA. Earnings within Traditional IRAs are tax-deferred until they are distributed from the account, and earnings within Roth IRAs may be distributed tax-free. Best of all, Traditional IRA contributions are tax-deductible for many taxpayers.* Over time, these special tax features may result in significantly larger savings accumulations than what can be accomplished in ordinary savings accounts.
Coverdell Education Savings Account (ESA)
A Coverdell ESA is a trust or custodial account created for the purpose of paying the qualified educational expenses of a designated beneficiary. Generally, these accounts are not subject to federal taxes.
For more information on ways you can take advantage of the tax benefits available from different accounts at BancorpSouth, click here, give us a call at 1-888-797-7711, or stop by one of our branches. We are happy to serve your financial needs.
*Please check with your tax advisor or attorney about the potential tax benefits of this account.
This document is not intended to provide you tax or legal advice. For informational purposes only.
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