IRAs
Retirement might be far down the road. Or it could be just around the bend. Either way, it's time to get serious about saving so you can make the most of life's next chapter.
There's a reason they call these the golden years
Everyone has a retirement dream. Things they want to do, places they want to go, moments they want to savor. One way to turn all these ideas into reality is with regular contributions to an Individual Retirement Account. At Commonwealth Credit Union, we offer Traditional and Roth IRAs, both of which can help boost your savings through potential tax advantages.
- $6,000 annual contribution limits ($7,000 if over age 50)
- Choice of savings accounts or IRA Share Certificates
- No front end charges or service charges
- Easy payroll deductions
- Quarterly statement provided, also accessible through Online Banking
- Receive monthly or quarterly checks when you reach the optional age of 59 1/2 or the required age of 70 1/2
- Federally insured separately from other accounts up to $350,000
Traditional IRAs
You could qualify for a tax deduction every year you contribute to a Traditional IRA. Consult your financial advisor.
- Contribution limits are $6,500 for those under 50 years old, and $7,500 for those 50 and over
- Annual contributions may be tax-deductible*
- Earnings accrue tax-deferred
- Fund withdrawals can begin at age 59-1/2
- Mandatory withdrawals at age 70-1/2
- Funds may also be withdrawn for first-time home purchase, education expenses or medical expenses**
- Federally Insured
Roth IRAs
With a Roth IRA, all withdrawals are tax-free. But you should consult your tax advisor for full details
- Contribution limits are $6,500 for those under 50 years old, and $7,500 for those 50 and over
- Contributions are not tax-deductible*
- Earnings accrue tax-free
- No mandatory withdrawal at age 70-1/2
- Funds may also be withdrawn for first-time home purchase, education expenses or medical expenses**
- Roth funds may be left tax-free to your heirs**
- Federally Insured
Coverdell Education Savings Account (ESA)
With tuition costs skyrocketing, families are looking for every possible resource to cover education costs. A Coverdell ESA offers many of the same tax benefits as a Roth IRA.
- Contribute up to $2,000 annually*
- Contributions are not tax-deductible*
- Earnings accrue tax-free
- Tax-fee withdrawals for qualified education expenses
- Funds may be used for college or vocational school tuition, housing, books, computers, and other supplies
- Funds may also be used for some primary and secondary education expenses
- Accounts are federally insured
To open an IRA or Coverdell Education Savings Account, please visit your local branch or give us at call at 800.228.6420.
*Subject to earned income guidelines. Consult your tax advisor for full details. **Consult your tax advisor for full details. Traditional and Roth IRAs are insured to $350,000. This includes $250,000 coverage provided by the NCUA, a federal government agency, and an additional $100,000 coverage by the Excess Share Insurance Corporation (ESI).
