Savings » IRAs (Individual
Retirement Accounts)
Today's IRAs offer higher contribution limits and the amount
you can contribute will continue to increase. There is also
a catch-up provision for members age 50 and over. Here’s
a brief summary of the accounts available to you:
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Traditional IRA
You can deduct your maximum contribution on your tax return
and defer paying taxes until you retire. Withdrawals are permitted
from age 59 1/2 up to age 70 1/2, and are taxed as ordinary
income. A Traditional Share Certificate IRA has a minimum
deposit requirement of $250, with terms ranging from 3 months
to 5 years. A regular IRA Share and Money Market Account are
also available.
You may be eligible for the full tax-deductible contribution
depending on your Adjusted Gross Income (AGI) and if you are
not a participant in an employer-sponsored retirement plan,
are a single taxpayer or married filing jointly, are a working
or non-working spouse, or you are under age 70 1/2 with earned
income.
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Roth IRA
Your maximum contribution is not tax-deductible, but all
future withdrawals are tax-free and penalty-free if the account
has been open for 5 years and you are 59 1/2 or older, or
if you are buying your first house (up to $10,000) or paying
for a higher education. Roth Share Certificate IRAs have the
same deposit requirements and terms as our Traditional IRAs
(see above).
If you exceed the AGI limits, you may not be eligible or
the amount you can contribute will be reduced. You can also
convert all or part of a Traditional IRA to a Roth IRA if
your combined income is $100,000 or less in the year of the
conversion. The amount you convert is taxed as ordinary income.
There are no conversion or penalty fees.
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Conduit IRA
This IRA keeps your distribution in a new, separate IRA.
You might consider this option if you need (or want) to wait
before rolling the money into a new employer’s program,
or for some other reason.
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IRA Money Market Account
Same as Traditional and Roth IRAs except dividend rates are
based on the same tiers as our regular Money Market Account.
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Get Started Today!
Let us help you establish a regular investment plan. It takes
only minutes to open the accounts you need. Call, or stop
by the credit union branch
nearest you to get started.
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Please seek the advice tax professional to
determine how the information on this page applies to your own
circumstances.
