There are several types of IRA accounts available at the Credit Union. It is advised that you speak with a financial advisor or tax consultant to evaluate your entire financial position before making a decision between the different programs available.
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This type of IRA is designed to allow individuals to place funds in a retirement account they have more control over than most employer sponsored plans.
Individuals may make contributions up to a total of $5,000 ($6,000 if 50 years or older) annually. There are restrictions on these accounts concerning tax-deductibility and withdrawals. Earnings are tax-deferred until distribution at which time they are included in gross income.
The minimum deposit required to open a Traditional IRA account is $5.00.
The Board of Directors declares the dividend rate monthly. The dividends are calculated monthly, and posted on a calendar quarter basis.
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The Roth IRA is an IRA whose advantages are "back loaded." Individuals may make non-deductible contributions up to a total of $5,000 ($6,000 if 50 years or older) annually. Earnings accrue tax-free and qualified distributions are tax-free.
The minimum deposit required to open a Roth IRA Share account is $5.00.
The Board of Directors declares the dividend rate monthly. The dividends are calculated monthly, and posted on a calendar quarter basis.
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The Education IRA Share account is a vehicle used to contribute up to $2,000 per child, annually, to a college fund.
The contributions are non-deductible, must be in cash, and no contributions can be made after the beneficiary attains age 18. Distributions made for qualified reasons are tax-free. To avoid penalty, all of the funds must be used by the time the beneficiary reaches age 30, or rolled over into another Education IRA for a member of the beneficiary's family.
The minimum deposit required to open an Education IRA Share account is $5.00.
The Board of Directors declares the dividend rate monthly. The dividends are calculated monthly, and posted on a calendar quarter basis.
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Roth IRA Certificates are available for time periods of 1, 2, 3, 4, or 5 years. Each has a minimum balance requirement of $1,000.00. The rates vary for each time period. The rates are set monthly by the Board of Directors, but are subject to change daily, based on market conditions. Dividends are paid semiannually from the date opened.
A penalty will apply for an early withdrawal from or the cancellation of a Roth IRA Certificate prior to maturity. The account "Disclosure" received at opening gives the details.
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