Individual Retirement Accounts (IRAs)
It’s never too early or too late to start saving for retirement. IRAs provide you with a strong foundation for the future and can offer an immediate tax deduction or tax-deferred interest. (Consult your tax advisor.)
Neighbors Credit Union proudly offers Traditional IRAs, Roth IRAs and Coverdell Education Savings Accounts. Our IRAs are on a tiered structure, giving you the power to earn a higher interest rate the higher your balance is. In addition, the option of an IRA CD is also available with terms from 12 to 84 months.
- Traditional IRA gives you a tax deduction right now on contributions and interest (depending on income level) and makes sense if you anticipate paying taxes at a significantly lower rate in retirement. Funds are available for withdraw penalty-free as soon as you reach age 59 ½ or for a qualified reason.
- Roth IRA is more flexible because you do not have to take mandatory distribution at age 70 ½ and you can withdraw contributions at any time, tax-free and penalty-free. After the account has been open for five tax years, earnings/interest are available for withdraw tax-free and penalty-free as soon as you reach age 59 ½ or for a qualified reason.
- Coverdell Education Savings Account (ESA) helps parents and students save for education expenses, including qualified elementary and secondary school expenses. ESA allows you to make non-deductible contributions with earnings/interest growing free from federal income taxes.
With the combination of federal and private insurance, Neighbors Credit Union currently insures your deposit accounts to at least $500,000 and your Individual Retirement Accounts to at least $500,000!
Interest is posted quarterly and there is a low $10 annual maintenance fee. Fees could reduce earnings on IRA CDs. Early withdrawal penalties may apply. See credit union for full details.