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IRA Shares

IRA Shares are designed to help members save for retirement. There is no minimum
balance requirements. Deposits made to this account may be tax deductible. Dividends
are paid quarterly.

Roth IRA & Traditional IRA

A Roth IRA is an Individual Retirement Account that provides tax-free growth.
You can open a Roth account here at the Credit Union. As with all IRAs, there are restrictions on your eligibility to contribute to a Roth IRA based on your income level and filing status; you can stay current with these rules and regulations from the IRS or inquire at the Credit Union. If you are eligible in a given year then you have until the following
April 15 to contribute. An individual retirement arrangement (IRA) allows a person, whether covered by an employer-sponsored pension plan or not, to save money for use in retirement while deferring taxes on the account's earnings. Stated differently, a traditional IRA converts investment income (interest, dividends, and capital gains) into ordinary income. Taxes are assessed at time of withdrawal.

IRA contributions are limited, and the limits are quite low in comparison to arrangements that permit employee contributions such as a 401(k) For current tax year, an individual may contribute the lesser of US $4,000 or the amount of wage income from US sources to his or her IRA account(s). In other words, an individual may have both a traditional and a Roth IRA, but can only contribute $4,000 total to those accounts, divided up any way he or
she pleases. There is one notable exception that was introduced in 1997, namely a provision for a spousal IRA. Under this provision, married couples with only one wage earner may each contribute the full amount to their respective IRA accounts.
Annual IRA contributions can be made between January 1 of that year and April 15 of the following year. Because of the extra three and a half months, if you send in a contribution to your IRA custodian between January and April, be sure to indicate the year of the contribution so the appropriate information gets sent to the IRS.

 

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