IRA & Education Savings
The U.S. Congress created individual retirement arrangements (IRAs) to encourage long-term retirement savings. They are a good addition to an overall retirement package and great for those who are just starting to save. You are eligible to contribute to an IRA at any age, as long as you have reportable earned income.
One of the best things about an IRA are the tax benefits that come with it. Dividends are either tax deferred or tax-free, depending of the type of IRA you open and your income. IRAs are subject to yearly contribution limits that are set by the Internal Revenue Service. They are based on your age and income level.
If you already have an IRA or another eligible retirement account you can roll it over directly to share in our competitive dividend rates. You may have multiple IRA accounts, but you should consult your tax advisor to make sure you are remaining within your annual contribution limits.
IRA Savings Account
We offer an IRA savings account that requires no minimum balance. You can add to this account with a payroll deduction of as little as $5 a pay period or you can make deposits in person.
Annual contributions to this type of IRA may be partially or fully tax-deductible. Distributions from a traditional IRA are generally taxable upon withdrawal. Consult your tax advisor for details.
While Roth IRA contributions are not tax deductible now, distributions can generally be taken tax-free. That means your never pay tax on any of the earnings in this type of account. This can yield significant savings over a long period of time. Consult your tax advisor for details.
Coverdell Education Savings Accounts
These accounts were created to help parents pay for the education of their dependent children. Earnings are distributed tax-free if used to pay for elementary school, secondary school or college education expenses.
Consult a Tax Advisor
Ask your tax advisor for advice regarding tax deductions for dividends and contributions. If you’re still not sure which type of IRA is right for you, come in and speak to one of our member service representatives. They can also help you open your account.
All of our share accounts are insured up to $250,000 by the National Credit Union Administration, an agency of the U.S. government. IRAs are insured separately up to an additional $250,000.
IRA & Education Savings Rates
|Account Type||Min Bal to Earn Dividend||Dividend Rate||APY*|
|IRA Savings Account||$0||0.10%||0.10%|
|Education Savings Account||$0||0.10%||0.10%|