Individual Retirement Accounts (IRAs)
It’s never too early or too late to start saving for retirement. An Individual Retirement Account also known as an IRA will 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 different types of IRA accounts. Our IRA accounts include Traditional IRAs, Roth IRAs and Coverdell Education Savings Accounts. Neighbors Credit Union's individual retirement accounts 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.
Each individual retirement account has specific requirements that must be met for opening accounts, contributions, and withdrawals. Please visit a branch for further details or visit the Internal Revenue Service's website.
- A 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.
- A 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.