Traditional IRA

You can open a Tradtional and Roth IRA account with a minimum balance of $1500.

Individual retirement accounts are a smart way to save for the future. A traditional IRA can be opened and funded without any employer participation. Contributions and/or earnings are tax-deferred until retirement. Unlike many employer plans, money in the account is always accessible; however, until age 59 1/2 there is a 10 percent early distribution penalty unless you qualify for an exemption due to one of the following: disability, qualifying education expenses, unemployment, qualifying first-home purchases, death, or receipt of your IRA assets in equal payments over your life expectancy.

A member under 50 can contribute up to $5,000 for 2008 through 2010. For owners age 50 or older, your annual contribution limit is $6,000 for 2008 through 2010.

For more information on a traditional IRA please contact the Member Services Department at the nearest branch office. Click here for branch office phone numbers. To view current rates click here or click here for the retirement claculator.

Roth IRA

Roth IRAs differ from Traditional IRAs in that the money you contribute to a Roth IRA has already been taxed. So the principal amount is never subject to taxes or penalties in the future, as long as you stay within the contribution guidelines. This retirement plan allows the money you contribute to grow tax-deferred.

If you do not withdraw any of the earnings until you have had the plan for at least five years, or satisfy one of the qualifying events, those tax-deferred earnings become tax-free. Unlike the traditional IRA, there is no 70 1/2 age limit on making contributions. You simply need to have earned income equal to the amount you contribute up to a maximum of $6,000 per year for tax years 2008 - 2010.

Click here for current rates or click here for the retirement claculator.

* The Credit Union provides no legal advice to members, and provides the foregoing information from a reliable resource to give our members a basic understanding of these services. You should consult with your tax or legal adviser regarding any particular and the current status of applicable federal and state laws.