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IRA Savings

Individual Retirement Accounts (IRA) & Coverdell Education Savings Account (CESA)

Individual retirement accounts offer tax benefits2 for retirement savings. Credit Union of America’s IRA Savings options include Traditional, Roth, and SEP. Build your balances with competitive rates in an IRA.

 

 

Flexible IRA Savings & CESA (includes Traditional, Roth, & SEP IRAs and CESAs)
Balance Range for Dividends1 Nominal Rate/APY*
$0.00 to $99.99 0.00% / 0.00%
$100.00 to $4,999.99 0.20% / 0.20%
$5,000.00 to $9,999.99 0.35% / 0.35%
$10,000.00 or more 0.45% / 0.45%

IRA and CESA products can only be opened in branch.

* APY = Annual Percentage Yield

1 Average daily balance of $100 must be maintained to earn dividends. Dividends paid monthly.

Traditional IRA

Defer paying taxes on your earnings until they’re withdrawn. This allows you to accumulate interest on a larger sum before paying income taxes and potentially doing so in a lower tax bracket at the time of your retirement.

Product Details

  • You are able to defer taxes on the earnings of your contributions until they are withdrawn.
  • Certain contributions may be tax deductible in the tax year that they are made.
  • If you have earned income, or your spouse has earned income, you are eligible.

Roth IRA

If you expect to be in a higher tax bracket when you retire, you may benefit from a Roth IRA rather than a traditional one.

Your money is taxed the year you open your Roth IRA. When you make withdrawals later, from the funds you’ve earned interest on, it could be entirely tax free.

Product Details

  • Contributions are nondeductible and taxed as income in the year they are earned.
  • Tax-free withdrawals for specific distribution reasons after a five-year holding period
  • Distributions of contribution amounts are always free of penalty tax, regardless of the reason or timing.

Roth IRA Eligibility Requirements:

  • You must have earned income, or your spouse must have earned income.
  • Your modified adjusted gross income (MAGI) cannot exceed certain prescribed limits.

Tax-Free Withdrawal Distribution Reasons:

  • After age 59 ½
  • Permanent disability
  • First-time home purchase
  • Owner’s death

SEP IRA

Simplified employee pension IRAs allow self-employed individuals to contribute to a retirement plan with few administrative tasks. These accounts follow the same qualification, rollover and disbursement rules as traditional IRAs.

Ready to get started?

Visit one of our 15 locations to open today!

2 For complete details on limits and requirements, please consult with a Credit Union of America (CUA) representative. For tax benefits please consult a tax advisor.