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IRA FEATURED RATES TRADITIONAL IRA ROTH IRA
| Featured Rates |
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| IRA CDs** |
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Rate |
APY1 |
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| Financial Calculators |
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$1,000 |
& greater |
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| 24 months |
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3.45% |
3.49% |
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| 60 months |
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3.70% |
3.75% |
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Other rates & terms available
| Charting Your Course to Retirement |
Start planning early for your retirement by contributing money each year to an Individual Retirement Account.
IRAs are called "Individual" Retirement Accounts because you open them in your own name. There's no such thing as a joint IRA, even for married couples.
It's easy to open an IRA. All you do is complete some simple paperwork for the IRS, and make a financial contribution.You'll also need to follow some important rules so you don't get stuck paying tax penalties.
The credit union administers your IRA and will keep track of the contributions and withdrawals you make.
To open an Individual Retirement Account call Member Services at 866.416.3700.
IRA Investment Options
Traditional or Roth - There are differences between these two IRA options.See the following information to determine which option is best for your needs.
IRA Savings Account - Open an IRA Savings Account for as little as $5. Set up payroll deduction to make saving for retirement simple and convenient.
IRA Certificates of Deposit - Greater returns with a minimum investment of $1,000 .The credit union offers terms of 12, 24, 36, 48 & 60 months. Click here for current rates.
Contributions
Traditional IRAs offer tax-deferred earnings,* and the possibility for tax-deductible* contributions.These tax advantages make the traditional IRA a powerful tool in creating your balanced, long-term savings plan.
- Contributions may be tax deductible* and earnings are tax deferred.*
- Anyone under 70 ½ with earned income is eligible to contribute.
- Allowable contributions up to $4,000 annually.If you are 50 or older, you can contribute $5,000 for 2006 & $5,000 in 2007.
Required Minimum Distributions (RMD)
You must begin to take required minimum distributions (RMD) from your traditional IRA by April 1 of the year following the year you turn age 70 ½.This means you must gradually reduce your IRA balance and add the distributed amount to your income, even if you are not in need of the funds.
*Consult a tax professional regarding the tax advantages of IRAs.
Contributions
Unlike Traditional IRAs, your contributions to a Roth IRA are not tax-deductible.
- Anyone with earned income is eligible to contribute (no age restriction).
- Allowable contributions up to $4,000 annually.If you are 50 or older, you can contribute $5,000 for 2006 & $5,000 in 2007.
The money in your Roth IRA, including earnings, can be withdrawn tax-free.* There are two requirements to qualify for tax-free withdrawals of the income your Roth IRA has earned.First, it must be 5 years after the first year that you made Roth contributions.Second, one of the following conditions must apply:
- You are 59 ½ or older;
- Funds are going to your beneficiary upon your death;
- You have become disabled;
- You are using the funds for a first-time home purchase (lifetime limit is $10,000 per person)
Required Minimum Distributions (RMD)
You are not subjected to the RMD rules. However, beneficiaries are subjected to minimum distribution requirements.
*Consult a tax professional regarding the tax advantages of IRAs.
1Annual Percentage Yield (APY) current as of October 1, 2008 and can change without notice. CDs have a Penalty for early withdrawal: 30 day penalty for maturities up to and including 1 year and 90 days for maturities over 1 year. IRA CDs have a 120 penalty. Automatic renewal with 7 calendar day grace period. Renewal notices to be sent out 30 calendar days before maturity. | 
