IRAs

RATE INFORMATION:
The dividend rate and annual percentage yield may change at any time, as determined by the credit union board of directors.

COMPOUNDING AND CREDITING:
Dividends will be compounded every quarter, dividends will be credited to your account every quarter.

DIVIDEND PERIOD
1, For this account type, the dividend period is quarterly, for example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is March 31. All other dividend periods follow this same pattern of dates. The dividend declaration date is the last day of the dividend period, and for the example above is March 31.
If you close your account before dividends are paid, you will not receive the accrued dividends.

MINIMUM BALANCE REQUIREMENTS:
$250.00 minimum balance requirements apply to this account.

DAILY BALANCE COMPUTATION METHOD:
Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.

ACCRUAL OF DIVIDENDS ON NONCASH DEPOSITS:
Dividends will begin to accrue on the business day you place noncash items (for example, checks) to your account.

TRANSACTION LIMITATIONS:
You may not make any withdrawals or transfers to another credit union account of yours or to a third party by means of a preauthorized or automatic transfer, telephonic order or instruction, or similar order to a third party.

Traditional IRAs

Must have earned income and not have reached age 70 ½ by the end of the year.
Maximum contributions – taxable years beginning 2013 and after $5500.00
Catch-up contributions – owners who have reached age 50 by the end of the year are eligible to make an additional catch-up contribution of $1000.
Earnings are tax-deferred until withdrawal.
Contribution restrictions based on adjusted gross income. See Credit Union brochure or consult with a tax advisor.
Tax Deduction – contributions up to the limit are fully tax deductible if you are not an active participate in a retirement plan. Otherwise phase out rules apply.
Penalties for early withdrawal –

None if:

  • Over 59 ½
  • Death or disability
  • Qualified medical expenses
  • Certain health insurance
  • Qualified college expenses
  • First time home buyer (up to $10,000)
  • Due to IRS levy
  • Periodic payments

Required distributions must begin by April following year participant turns 70 ½.

Roth IRA

Must have earned income. There are no age restrictions.
Maximum contributions- taxable years beginning in 2013 and after $5500.00
Catch-up contributions- owners who have reached age 50 by the end of the year are eligible to make an additional catch-up contribution of $1000.
Earnings grow tax-free.
Contribution restrictions based on adjusted gross income. See Credit Union brochure or consult with a tax advisor.
Tax deduction – NO
Penalties for early withdrawal –

None if made after five years of establishing your IRA plan and:

  • Over 59 ½
  • Death of disability
  • Qualified medical expenses
  • Certain health insurance
  • Qualified college expenses
  • First time home buyer (up to $10,000)

Required distributions are upon the death of the owner.

Education IRA

  • Contributions may be made for current year only.
  • Available to individuals with income to$95,000.00 and couples filing jointly with income to $150,000.00. (contributions are phased out between $95,000.00 and $110,000.00 for individuals, between $150,000.00 and $160,000.00 for joint filers, and between $0.00 and $10,000.00 for those married filing separately.)
  • Contributions limited to $500.00 per year per beneficiary, but this is in addition to the $2,000.00 limit for Roth and /or traditional IRAs.
  • Contributions may be withdrawn tax-free at any time.
  • Money may be withdrawn tax-free if used to pay for beneficiary’s post-secondary expenses before he or she reaches age 30.
  • Distributions used for any other purpose are taxable to the beneficiary in the same manner as distributions from a traditional IRA that has received nondeductible contributions.
  • Taxable distributions are subject to a 10% tax unless the beneficiary is deceased, disabled, or to the extent that a scholarship is received.