Individual Retirement accounts
Traditional IRA
Individual retirement accounts are a smart way to save for the future. A traditional IRA can be opened and funded without any employer participation. Contributions and/or earnings are tax-deferred until retirement. Unlike many employer plans, money in the account is always accessible; however, until age 59 1/2 there is a 10% early distribution penalty unless you qualify for an exemption due to one of the following: disability, qualifying education expenses, unemployment, qualifying first-home purchases, death, or receipt of your IRA assets in equal payments over your life expectancy.
Members under age 70 1/2 may contribute to an IRA at a maximum of $5,000 per tax year.
For more information on a traditional IRA please contact us. Click here for the retirement calculator.
* The Credit Union provides no legal advice to members, and provides the foregoing information from a reliable resource to give our members a basic understanding of these services. You should consult with your tax or legal advisor regarding any particulars and the current status of applicable federal and state laws.
Roth IRA
Roth IRAs differ from Traditional IRAs in that the money you contribute to a Roth IRA has already been taxed. So the principal amount is never subject to taxes or penalties in the future, as long as you stay within the contribution guidelines. This retirement plan allows the money you contribute to grow tax-deferred.
If you do not withdraw any of the earnings until you have had the plan for at least five (5) years, or satisfy one of the qualifying events, those tax-deferred earnings become tax free. Unlike the traditional IRA, there is no 70 1/2 age limit on making contributions. You simply need to have earned income equal to the amount you contribute up to a maximum of $5,000 per tax year.
Click here for the retirement calculator.
* The Credit Union provides no legal advice to members, and provides the foregoing information from a reliable resource to give our members a basic understanding of these services. You should consult with your tax or legal advisor regarding any particulars and the current status of applicable federal and state laws.