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.
Interest is posted quarterly and there is a low $10 annual maintenance fee.
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!
Types of IRAs
- 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.
Each IRA has specific requirements that must be met for opening accounts, contributions, and withdrawals. Please visit a branch for further details or visit the IRA page on the Internal Revenue Service's website.