IRAs

Grand Trunk (BC) Employees Federal Credit Union can help you save for retirement.  We offer two types of Individual Retirement Account (IRA) options.

Traditional IRA
To qualify for a Traditional IRA, members must have earned income and be younger than 70 ½ at the end of the year.  Earnings are tax-deferred until withdrawal.  Contribution limits are in place and are dependent on age and adjusted gross income.  Catch-up contributions can be made.   Contributions may be eligible for tax deductions.  Penalties will be applied on early withdrawals if applicable.  Distributions will start by April of the following year after the account holder turns 70 ½.

Roth IRA
To qualify for a Roth IRA, members must have earned income.  There are no age restrictions.  Earnings grow tax-free.  Contribution limits are in place and are dependent on adjusted gross income.  Catch-up contributions can be made.  Contributions to a Roth IRA are not eligible for tax deductions.  Penalties will be applied on early withdrawals if applicable.

Disclosures
A deposit of $250.00 or more is required to start an Individual Retirement Account.  The minimum balance must be maintained to earn dividends.  The dividend rate and annual percentage yield are determined by the credit union’s Board of Directors and are subject to change at any time.  Dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.  Dividends will be compounded and credited to your account quarterly.  If the account is closed before dividends are paid, the account will not be credited the accrued dividends.  Withdrawals or transfers to another credit union or third party by means of a pre-authorized or automatic transfer, telephone order or instruction, or similar order to a third party are not allowed.

Consult with a tax adviser or credit union specialist for more information.