Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

Whether you're a working pro, a doting parent, or both, time can feel like it's whizzing by at top speed. Before you know it, you'll be ready to retire. But will you truly be ready to retire?

To ensure your future, open an IRA with Financial Center CU. You'll earn competitive dividends above standard savings rates — with no fees! We offer three types of IRAs to suit members of any financial means. You can't stop time, but you can make every day count.

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Summary
  • Competitive dividends
  • Traditional, Roth, and Coverdell Education Savings Account options
  • No setup fees
  • No monthly or annual maintenance fees when you maintain a minimum balance of $500
  • Annual contribution limits apply
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase share certificates within IRA
  • IRA Certificate - $2,500
  • IRA Shares - $5
Traditional vs. Roth IRA

There are advantages to both Traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59 ½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70 ½

Roth IRA

  • Income limits to be eligible to open Roth IRA***
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal*
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals on interest can begin at age 59 ½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

*Subject to some minimal conditions. Consult a tax advisor.

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***Consult a tax advisor.