Individual Retirement Accounts
Current Savings Rates
Traditional IRA
May Have Tax Advantage
No Annual Fee* with a $2,500 balance by year end or if contributions are made by Direct Deposit or Payroll Deduction. (* Annual fee is $10 if the account balance is less than $2,500 at the end of the calendar year, or if you don’t use direct deposit or payroll deductions to make your contributions.)
Contributions are made pre-tax
Dividends are calculated daily and compounded quarterly
Variable rate
Rate changes quarterly
See a Member Service Representative for maximum annual contribution
Roth IRA
Money grows tax-deferred if one of the following applies: (1) if the money has been in the account for at least five years and you are older than 59-1/2; or (2) you become disabled; or (3) you die and it’s paid to a beneficiary; or (4) you use the money for a first-time home purchase.
Does not require that funds begin to be withdrawn at age 70-1/2
You can convert a Traditional IRA to a Roth IRA.
Contributions are made post-tax
No Annual Fee* with a $2,500 balance by year end or if contributions are made by Direct Deposit or Payroll Deduction
(* Annual fee is $10 if the account balance is less than $2,500 at the end of the calendar year, or if you don’t use direct deposit or payroll deductions to make your contributions.)
Dividends are calculated daily and compounded quarterly
Variable rate
Rate changes quarterly
See a Member Service Representative for maximum annual contribution
Coverdell Education IRA
You can invest up to $2,000 per year per child up to the age of 18
Contributions are not tax deductible
Money grows tax-deferred if it’s used for qualified higher-education expenses before the beneficiary reaches age 30.
Contributions are made post-tax
No Annual Fee* with a $2,500 balance by year end or if contributions are made by Direct Deposit or Payroll Deduction
(* Annual fee is $10 if the account balance is less than $2,500 at the end of the calendar year, or if you don’t use direct deposit or payroll deductions to make your contributions.)
Dividends are calculated daily and compounded quarterly
Variable rate
Rate changes quarterly