Individual Retirement Accounts

Pick the path that’s right for you and put your money to work. Whether you’re saving for your golden years or planning a long term savings path, Individual Retirement Accounts are excellent tools for achieving your goals. Plus, contributions may be tax-deductible and will grow either tax-deferred or tax-free.

TRADITIONAL IRA

Contributions are fully tax-deductible if you are not an active participant in an employer retirement plan or your income does not exceed certain limitations. Investments grow on a tax-deferred basis, and contributions and earnings are taxed only upon withdrawal.

ROTH IRA

Contributions are not tax deductible, and contributions and earnings can be withdrawn tax free with limitations. You may convert your traditional IRA to a Roth IRA and enjoy tax-free withdrawals, subject to income tax.

COVERDELL EDUCATION SAVINGS ACCOUNT

Coverdell Education Savings Account (ESA) earnings grow tax-free. And your ESA can be used to pay qualified elementary school and secondary school expenses as well as those for higher education. There is no tax deduction for contributions.

Traditional IRAs, Roth IRAs and Coverdell Educational Savings Accounts must be opened by April 15th Total contributions to all of your traditional and Roth IRAs cannot be more than $6,500 or $7,500 if you are 50 or older. Contribution limit may be adjusted annually for inflation as determined by the IRS. Annual limit applies to any combination of IRA plans other than the Coverdell Education Savings Account. The credit union does not offer tax advice.  Retirement savings are federally insured by the NCUA up to $250,000.