• An IRA can be opened with as little as $100.00.
• Our Member Service Representatives are available to answer questions and provide information on Traditional IRAs, Roth IRAs, and Coverdell ESAs (or Education Savings Accounts).
• Members may contribute to an IRA at any time of the year.  Automatic Transfers can be arranged from a credit union Share or Share Draft (checking) account to the IRA, making saving effortless.
• Coosa Pines FCU also accepts rollovers, transfers or lump-sum distributions from qualified retirement savings plans (QRPs) or from IRAs currently held by other financial institutions.
• Dividends on IRAs are declared and paid quarterly.
• Individual Retirement Accounts are insured separately from other Coosa Pines FCU deposit accounts, federally through the National Credit Union Administration (NCUA) with additional insurance provided by Excess Share Insurance, Inc.

 

• IRA Certificates generally carry the same rates and terms as Share Certificates, including any current Certificate Specials.
• There is a penalty for early withdrawal of certificate funds in excess of dividends earned.  See a Member Service Representative for details.

IRA Withholding Notice

• To make regular contributions, IRA owner must be under age 70 ½ and earning compensation or filing taxes jointly with a spouse who earns compensation.
   
• Federal income taxes are deferred on earnings until time of withdrawal.*
   
• Early Distribution (or Penalty) Tax may be charged against withdrawals, depending on owner’s age and reason for the withdrawal.*
   
• Contributions are frequently tax-deductible.*
   
• Contributions for the previous year may be made up to tax filing day of the current year.
   
• Contribution limits are determined by tax year, age and filing status, as well as participation in other plans.  However, owners age 50 and over may be eligible to make additional “catch-up” contributions.
   
• IRS requires that owners begin receiving Required Minimum Distribution (RMD) payments from the IRA at age 70 ½.
   
• Funds can be contributed by the owner, rolled into the IRA from another Traditional IRA, or transferred directly from Qualified Retirement Plans (QRPs).

*Consult with a qualified professional for tax advice.

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• No age requirement to make contributions, but IRA owner must be earning compensation or filing taxes jointly with a spouse who earns compensation.
   
• To make regular contributions, owner must fall within income guidelines.
   
• Earnings may be tax-free if owner has met certain requirements.*
   
• Qualified Distributions (or withdrawals) are considered tax and penalty- free transactions if treated as a return of the owner’s regular contributions or if the distribution meets certain conditions.*
   
• Contributions are not tax deductible.*
   
• Contributions for the previous year may be made up to tax filing day of the current year.
   
• Contribution limits are determined by tax year, filing status and income level, as well as participation in other plans, however owners age 50 and over may be eligible to make additional “catch-up” contributions.
   
• The IRS does not enforce a Required Minimum Distribution (RMD) against Roth IRAs.
   
• Funds can be contributed by the owner, rolled or directly transferred into the IRA from another Roth IRA (restrictions may apply), or converted from a Traditional IRA (though converted funds may be taxable).
   
• Qualified Retirement Plan (QRP) funds may not be moved to a Roth IRA.

• Purpose is to pay a child’s education expenses.
   
• Earnings are tax-free if used for qualified education expenses. *
   
• Qualified expenses can be for public, private or parochial elementary, secondary or post-secondary expenses.
   
• Qualified expenses may include tuition, fees, books, supplies and equipment, computer technology or equipment.
   
• Room and board may qualify if certain conditions are met.
   
• Non-qualified distributions may be subject to tax and penalty.*
   
• The Designated Beneficiary (child) must be under age 18 for regular contributions, unless the child is a special needs student.
   
• Responsible Individual must be the child’s parent or legal guardian.
   
• Persons other than parents may make contributions, though certain income restrictions apply.
   
• Contributors are not required to earn compensation as with Traditional and Roth IRAs.
   
• Companies, including tax-exempt organizations, are allowed to contribute to an Education Savings Account.
   
• Contributions are not tax-deductible.*
   
• Total contributions may not exceed $2,000 per child per year (2011).
   
• Coverdell ESAs are flexible and can be moved to a qualifying family member if not used by the original Designated Beneficiary.
   
• Funds must be used or transferred to the ESA of a qualifying family member by the 30th birthday of the original Designated Beneficiary.

*Consult with a qualified professional for tax advice.

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*If you need clarification or help determining what you are eligible to contribute, you may speak with a Member Service Representative or seek professional tax advice.

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