IRAs

Individual Retirement Accounts (IRAs)

An IRA is a special account that holds your funds for retirement. It acts as tax-advantaged savings tool designed to provide retirement income in addition to Social Security income, employer sponsored retirement plan benefits, personal savings, and wages. It is never too late to start saving for your retirement! We offer several options at no cost to meet your specific needs.

Traditional

The Traditional IRA offers tax-deductible contributions, which gives you the ability to reduce your taxable income in the year in which you contribute. With this option, you pay taxes on the funds when you take them out later in life.  A Traditional IRA is best suited for individuals who wish to decrease their taxes owed at the end of the year AND plan on keeping funds in the IRA until at least age 59 ½.  Before age 59 ½, withdrawals are subject to a hefty early withdrawal penalty from the IRS.  You can begin making penalty-free withdrawals at age 59 ½.  After age 70 ½, the IRS requires you to withdraw a percentage of your funds at least annually.  We can set up those withdrawals to be transferred to your credit union share draft or savings account or the funds can be mailed to your home address.

Roth

A Roth IRA allows you to withdraw contributions tax-free and penalty free at any time. You also have the ability to withdraw tax-free earnings if certain requirements are met. This IRA does not offer a reduction to your taxable income, but allows you access to your funds without any hefty penalties. This IRA is suggested for those who would like their funds available to them penalty free at any given time.

Coverdell

This plan is not for retirement, but instead used to save for educational funds. Coverdell ESAs allow money to grow tax deferred and proceeds to be withdrawn tax free for qualified education expenses at a qualified institution. Qualified institutions includes primary and secondary schools as well as colleges and universities.

SEP

SEP IRAs are adopted by business owners to provide retirement benefits for the business owners and their employees. If the self-employed person does have employees, all employees must receive the same benefits under a SEP plan. Much like a Traditional IRA, contributions are tax-deductible. This reduces the taxable income in the year in which the contribution is made.

IRA Share Certificates (for all IRA types)

IRA CDs simply segregate some of your IRA funds and locks those funds in at a certain rate for a specified period of time.  The same terms, conditions, and rates that apply to our regular Share Certificates apply to IRA Share Certificates.

IRA Savings
Balance APR1 APY2
$5.00 to $50.00 0.00% 0.00%
$50.01 to $10,000 0.35% 0.35%
$10,001 to $25,000 0.45% 0.45%
$25,001 and over 0.55% 0.55%

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Savings Federally Insured to $250,000 by NCUA, an Agency of the U.S. Government
1APR = Annual Percentage Rate, (effective 8/10/2015)
2APY = Annual Percentage Yield, (effective 8/10/2015)
All rates are subject to change without notice.