IRAs are incredibly helpful when planning for your retirement

We offer Savings and Certificates with the following IRA options:

Click on the titles to learn more

An individual retirement accounts (IRAs) allow individuals to direct pre-tax income towards investments that can grow tax-deferred (meaning no capital gains or dividend income is taxed). Specific annual limits are set for Traditional IRA contributions, but they may be tax-deductible depending on the taxpayer’s income, tax-filing status, and other factors.

When an individual begins to receive distributions from a Traditional IRA, the income is treated as ordinary income and may be subjected to income tax. This differs from the Roth IRA, which can offer tax-free distributions. For people over the age of 50, higher annual contribution limits may apply if the IRA has been recently created or under-funded in previous tax years. Distributions are required to come out of the account by the time the owner reaches age 70.5.

*Before starting any IRA, consult with your tax advisor to determine which type of IRA would work best for you.

A Roth IRA is an individual retirement plan similar to the Traditional IRA, but contributions are not tax deductible. However, qualified distributions are tax-free. Similar to other retirement plan accounts, non-qualified distributions from a Roth IRA may be subject to a penalty upon withdrawal.

A qualified distribution is one that is taken at least five years after the taxpayer establishes his or her first Roth IRA and when he or she is age 59.5, disabled, using the withdrawal to purchase a first home (limit $10,000), or deceased (in which case the beneficiary collects). Since qualified distributions from a Roth IRA are always tax-free, some argue that a Roth IRA may be more advantageous than a Traditional IRA.

This is a great option for a Roth 401k plan rollover.

*Before starting any IRA, consult with your tax advisor to determine which type of IRA would work best for you.

Coverdell Education Savings Account (or Coverdell ESA) is a tax-advantaged savings account intended to help parents and guardians prepare for the expense of their child’s education. With this option, an account holder can contribute up to $2000 per child per year.

*Before starting any IRA, consult with your tax advisor to determine which type of IRA would work best for you.

Current IRA Contribution Levels

Rates current as of March 18, 2016

2015
2016
Roth IRA Contribution Limit
$5,500
$5,500
Roth IRA Contribution Limit if 50 or over
$6,500
$6,500
Traditional IRA Contribution Limit
$5,500
$5,500
Traditional IRA Contribution Limit if 50 or over
$6,500
$6,500

With a little patience and steady contributions,

you’ll see your IRA grow into an account that will help provide safety and security for you and your family for years to come.

*A Choice Savings account with a minimum $5 balance is required to become a member and open an account.
Your $5 will be returned to you should you close your membership.
Go to our Choices Matter page to learn more.

You can open one of our IRAs and start taking control over your financial future.

Already a member? Simply login to Online Banking to contact us about opening a new account.