Individual Retirement Account (IRA) options make saving for a financially secure future easier.
- An IRA can be opened with as little as $100.00
- Our Member Service Representatives can answer questions and provide information on Traditional and Roth IRAs
- Members may contribute to an IRA at any time of the year
- Automatic transfers from your Share Savings or Share Draft Checking account make savings effortless
- Coosa Pines FCU accepts rollovers, transfers, and lump-sum distributions from qualified retirement savings plans (QRPs) or IRAs currently held by other financial institutions
- Dividends on IRAs are declared by the Board of Directors and paid quarterly
- IRA Certificates may be purchased for higher dividends; however, early withdrawal penalties may apply
Individual Retirement Accounts are insured separately from other Coosa Pines FCU deposit accounts, federally to $250,000 through the National Credit Union Administration (NCUA), with $250,000 additional insurance provided by Excess Share Insurance, Inc.
Traditional IRAs
Traditional IRAs provide you with great benefits, such as deferred federal income taxes, tax-deductible contributions, easily transferable fund options
- 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, filing status, and participation in other plans. However, owners aged 50 and over may be eligible to make additional “catch-up” contributions.
- The IRS generally requires you to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 73.
- 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. Fees assessed to the account may reduce earnings.
Roth IRAs
Roth IRAs are a great option that can offer tax-free earnings and other perks.
- 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. You may leave funds in a Roth IRA as long as you live.
- 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.
*Consult with a qualified professional for tax advice. Fees assessed to the account may reduce earnings.
IRA Certificates
IRA deposits may also be invested in IRA Certificates for a specific amount of time, which may earn higher dividend rates than the regular Individual Retirement Account.
- IRA Certificates generally carry the same rates and terms as Share Certificates, including any current Certificate Specials.
- There is no monthly paid dividend option on an IRA Certificate.
There is a penalty for early withdrawal of certificate funds in excess of dividends earned. Fees assessed to the accounts may reduce earnings. See a Member Service Representative for details.