Time flies, and retirement is just around the corner. It’s never too early or too late to start saving — especially with tax advantages.*
Key Features
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Tax Advantages*
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Competitive Dividends
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No Setup or Maintenance Fees
- Prepare for retirement with tax-advantaged savings*
- Competitive dividends on balances of $500 or more
- Higher than standard savings rates
- Dividends compounded and credited monthly
- Traditional and Roth IRA options**
- No setup fees
- No monthly or annual maintenance fees
- Annual contribution limits apply (see current contribution limits; $6,000 as of 2019)
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- Funds can be used to purchase CDs within IRA
- Early withdrawal penalties may apply†
- $500 minimum deposit to open
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 tax1
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty2
- Mandatory withdrawals at age 70½
Roth IRA
- Income limits to be eligible to open Roth IRA3
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal1
- Principal contributions can be withdrawn without penalty1
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest subject to penalty2
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
1Subject to some minimal conditions. Consult a tax advisor.
2Certain exceptions apply, such as healthcare, purchasing first home, etc.
3Consult a tax advisor.
Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow competitive dividends and also financial confidence for a new stage in life.
- Set aside funds for your child's education
- No setup or annual fee
- Dividends grow tax-free
- Withdrawals are tax-free and penalty-free when used for qualified education expenses1
- Designated beneficiary must be under 18 when contributions are made
- To contribute to an ESA, certain income limits apply2
- Contributions are not tax deductible
- $2,000 maximum annual contribution per child
- The money must be withdrawn by the time he or she turns 303
- The ESA may be transferred without penalty to another member of the family
- $500 minimum deposit to open
1Qualified expenses include tuition and fees, books, supplies, board, etc.
2Consult your tax advisor to determine your contribution limit.
3Those earnings are subject to income tax and a 10% penalty.
*Consult a tax advisor.
**Subject to credit approval. Some IRAs are insured up to $250,000 by the NCUSIF. Talk to your tax advisor and see which IRA is best suited for your financial future.
†Early Withdrawal Penalties
If you request us to pay any portion of a Certificate Account or IRA Certificate Account, except for earned dividends, before the date the Account matures, and we consent to the early withdrawal request for any reason, you shall incur a penalty unless, we waive the penalty, at our full and complete discretion, and one the following circumstances exist: (1) death, (2) mental incompetency, (3) where the account is an IRA and any portion is paid within seven (7) days after establishment, and (4) where the account is an IRA Certificate Account and the owner attains age 59 ½ or becomes disabled.
For Certificate Accounts and IRA Certificate Accounts, the amount of the penalty is ninety (90) days of dividends earned for Certificates with terms of less than or equal to one (1) year. The amount of penalty is one-hundred eight (180) days of dividends earned for Certificates with terms of more than one (1) year. To the extent necessary to comply with these penalty provisions, deductions shall be made from the amount withdrawn or the remaining certificate balance. If the amount withdrawn or the penalty reduces the balance below the minimum balance for this type of certificate, then the Certificate Account or IRA Certificate Account must be closed.