IRA Savings

Retirement means different things to different people. Opening an IRA is a great start towards financial security. The two most common plans are Traditional IRAs and Roth IRAs. Each plan offers different tax advantages and benefits and we offer savings accounts and certificates for both plans. We’ll help you choose the plan that’s right for you to make the most of your retirement dollars.

Traditional IRA

The Traditional IRA helps you save for your retirement, and contributions may be tax deductible.

• You can contribute if you (or your spouse if filing jointly) have taxable compensation
• Early withdrawals under age 59 ½ may be subject to 10% penalty unless disabled or paying for qualified expenses (e.g., first home, education)
• Mandatory distributions at age 73

Benefits

• Contributions may be tax deductible
• Interest grows tax-deferred until withdrawn
• Funds can be used to purchase a first home ($10,000 lifetime maximum)
• Funds can be used to pay for qualifying education expenses

Roth IRA

A Roth IRA helps you save for your retirement by sheltering your earnings from income tax

• You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below IRA set limits
• Contributions are not tax deductible
• Early withdrawals of earnings under age 59 ½ may be subject to 10% penalty unless disabled or paying for qualified expenses (e.g., first home, education)
• No distribution requirements

Benefits

• All withdrawals, including earnings, are tax-free if the account has been open at least 5 years and are used for qualified expenses
• No requirement to withdraw at any age
• Contributions can be made at any age, with qualified income
• Funds can be used to purchase a first home ($10,000 lifetime maximum)
• Funds can be used to pay for qualifying education expenses

IRA Products

IRA Savings: The IRA Savings account requires no minimum balance, has no credit union imposed penalty for early withdrawal, and allows for deposits. They are classified as an IRA and therefore are subject to IRS terms and conditions. 

IRA Share Certificate: An IRA Certificate is basically the same as a regular Share Certificate, except they are classified as part of your IRA and therefore are subject to IRS terms and conditions. As with any certificate, there is a penalty for early withdrawal and there may also be a penalty under IRS law.