 The credit union has two types of Individual Retirement Accounts (IRAs) to choose from:
IRA Share
Accumulation Account |
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IRA Certificate |
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- Open with as little as $5.00
- Make periodic deposits
- Earn dividends while you save for your IRA
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- Choose from Traditional, Roth or a Coverdell
Education Savings Account
- Open with as little as $500.00
- Make catch-up contributions (if age 50 or older)
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Traditional IRAs
Roth IRAs
Coverdell Education Savings
IRA Share Accumulation Accounts
Calculators & Applications
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How much can
I contribute each year? |
| Traditional |
2007: up to $4,000 per year
2008: up to $5,000 per year
Persons over 50 may be able to contribute more; contributions may not exceed annual compensation.
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| Roth |
2007: up to $4,000 per year
2008: up to $5,000 per year
Persons over 50 may be able to contribute more; contributions may not exceed annual compensation.
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| Coverdell ESA* |
Up to $2,000 per child, per year. |
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Are these contributions tax-deductible? |
| Traditional |
Yes, if neither you or your spouse is already enrolled in a retirement plan that is employee-sponsored. Partial deductions for those enrolled in retirement plans may be available - consult your tax adviser. |
| Roth |
No, these contributions are not tax-deductible. However, regular contributions can be withdrawn tax and penalty free at any time. |
| Coverdell ESA* |
No, these contributions are not tax-deductible. |
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Do I have to pay taxes on my dividend earnings? |
| Traditional |
Yes, but not until you withdraw the funds, allowing the earnings to grow tax-deferred. |
| Roth |
No, if the account is active for five years and funds are withdrawn for a qualified reason. |
| Coverdell ESA* |
No, provided the funds are used for the child's qualified education expenses. |
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How long can I make contributions? |
| Traditional |
Up to age 70 1/2
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| Roth |
Contribute as long as MAGI (modified adjusted gross income) does not exceed state limitations. |
| Coverdell ESA* |
Contribute until the child reaches age 18. |
IRA information not intended as tax advice. Please consult a tax professional. *Coverdell Education Savings Account
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