Individual Retirement Account (IRA)
There are several types of IRA accounts available at the Credit Union. It is advised that you speak with a financial advisor or tax consultant to evaluate your entire financial position before making a decision between the different programs available.
- Traditional IRA Share Account
This type of IRA is designed to allow individuals to place funds in a retirement account they have more control over than most employer sponsored plans. Individuals may make contributions up to a total of $5,000 ($6,000 if 50 years or older) annually. There are restrictions on these accounts concerning tax-deductibility and withdrawals. Earnings are tax-deferred until distribution at which time they are included in gross income.
The minimum deposit required to open a Traditional IRA account is $5.00.
The Board of Directors declares the dividend rate monthly. The dividends are calculated monthly, and posted on a calendar quarter basis.
- Roth IRA Share Account
The Roth IRA is an IRA whose advantages are "back loaded." Individuals may make non-deductible contributions up to a total of $5,000 ($6,000 if 50 years or older) annually. Earnings accrue tax-free and qualified distributions are tax-free.
The minimum deposit required to open a Roth IRA Share account is $5.00.
The Board of Directors declares the dividend rate monthly. The dividends are calculated monthly, and posted on a calendar quarter basis.
- Education IRA Share Account
The Education IRA Share account is a vehicle used to contribute up to $2,000 per child, annually, to a college fund. The contributions are non-deductible, must be in cash, and no contributions can be made after the beneficiary attains age 18. Distributions made for qualified reasons are tax-free. To avoid penalty, all of the funds must be used by the time the beneficiary reaches age 30, or rolled over into another Education IRA for a member of the beneficiary's family.
The minimum deposit required to open an Education IRA Share account is $5.00.
The Board of Directors declares the dividend rate monthly. The dividends are calculated monthly, and posted on a calendar quarter basis.
A penalty will apply for an early withdrawal from or the cancellation of a Roth IRA Certificate prior to maturity. The account "Disclosure" received at opening gives the details.
