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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.

  1. Traditional IRA Share Account
    •  Individuals may make contributions up to a total of $5,000 ($6,000 if 50 years or older) annually.
    • 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.
  2. Roth IRA Share Account
    • 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
    • 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.
  3. Education IRA Share Account
    • Individuals may 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.

 

 

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