Individual Retirement Accounts (IRA's)
Traditional, Roth, & Coverdell Education Savings
A secure way to plan for the future
- No minimum deposit required to open
- Maintains higher annual percentage yield than regular share account
- Dividends are calculated daily and are paid semiannually
- Deposits can be made anytime & for any amount up to the legal maximum
- NCUA Insured
Traditional IRA offers a tax deferral for qualified contributors. You can invest in a Traditional IRA if you are under the age of 70 1/2 and have income from some sort of earned compensation, or if you are filing federal taxes jointly with a spouse who has income from compensation. You can also roll money from a qualified compensation plan, such as a 401(k), into a Traditional IRA.
While your tax advisor can offer more guidance on which type of IRA best suits your needs, we can answer some of your questions and assist with opening your IRA Account. Simply stop by any office.
Currently, you can contribute up to $5,500 annually (for owners age 50 and older, you may be able to contribute up to $6,500), but contributions cannot exceed compensation. Contribution regulations change annually, so be sure to check with your tax advisor when opening an IRA. Contributions may be tax deductible and earnings will grow tax-deferred until withdrawn.
Contributions may be made by:
- Single individuals not active in employer retirement plans, such as a 401(K)
- Single individuals active in qualified retirement plans with income below Modified Adjusted Gross Income (MAGI) limits
- Married couples with neither spouse active in an employer retirement plan
- Married individuals active in qualified retirement plans filing joint tax returns with income below MAGI-defined limits
- Married individuals not active in qualified retirement plans filing joint tax returns with spouses who are, as long as MAGI is below defined limits
One additional benefit of a Traditional IRA is there are circumstances when you can withdraw funds from your account without being penalized.
Some conditions may include withdrawing money for:
- Qualified higher-education expenses
- Disability of the account holder
- Payment to beneficiaries upon the account holder’s death
- Unreimbursed medical expenses that exceed 7.5% of account holder’s adjusted gross income (from the previous tax year)
- Payment of medical insurance premiums if account holder is unemployed for 12 weeks or longer
- Expenses associated with buying or building a first home
- Payment of any IRS levy
You can also elect to start withdrawing from your Traditional IRA without penalty once you reach the age of 59 1/2.
Be sure to check with a qualified tax advisor when opening an IRA
Unlike a Traditional IRA, a Roth IRA does not offer the possibility of a tax deduction up front. However, earnings on a Roth IRA may be completely tax-free at the time of withdrawal (provided certain qualifications are met).
Currently, you can contribute up to $5,500 annually (for owners age 50 and older, you may be able to contribute up to $6,500), but contributions cannot exceed compensation. Contribution regulations change annually, so be sure to check with your tax advisor when opening an IRA.
A Roth IRA can offer you:
- Tax-free and penalty-free withdrawals of regular contributions at any time
- Tax-deferred earnings and tax-free, qualified withdrawals if the account is open for five years
- Dividends earned from day of deposit to day of withdrawal
- Time because you are not required to start making withdrawals at age 70 ½ like with Traditional IRAs
Be sure to check with a qualified tax advisor when opening an IRA.
HSA- Health Savings Account
Oakdale Credit Union offers HSA accounts. Call and talk to a specialist for details.
What is a HSA? A Health Savings Account (HSA) is a tax-advantaged medical savings account you can contribute to and draw money from for certain medical expenses tax-free.
IRA Term Certificates
- $250 minimum balance to open
- 12 & 24 month certificates available
- NCUA Insured