Individual Retirement Account (IRA)

An Individual Retirement Account (IRA) is an account that provides tax benefits when used to save money for retirement.  ECU Credit Union offers three types of IRAs:

Traditional IRA - A traditional IRA is a way to save for retirement that gives you tax advantages.  Contributions you make to a traditional IRA may be fully or partially deductible, depending on your circumstances, and generally, amounts in your traditional IRA (including earnings and gains) are not taxed until distributed.

ROTH IRA - A Roth IRA is a retirement savings account that allows your money to grow tax- free.  It is subject to the rules that apply to a traditional IRA with the following exceptions:

  • You cannot deduct contributions to a Roth IRA.
  • If you satisfy the requirements, qualified distributions are tax-free.
  • You can make contributions to your Roth IRA after you reach age 70 ½.
  • You can leave amounts in your Roth IRA as long as you live.
  • The account or annuity must be designated as a Roth IRA when it is set up.

Coverdell Education Savings Account (ESA) - A Coverdell ESA is a trust or custodial account opened only for the purpose of paying the qualified education expenses of the designated beneficiary of the account.  When the account is established, the designated beneficiary must be under age 18 or a special needs beneficiary.  To be treated as a Coverdell ESA, the account must be designated as a Coverdell ESA when it is created.  Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed.

To open an IRA or for additional information please contact us at 1.800.382.2400.  Below is additional information ECU’s IRA program.

  •  Dividends are paid and compounded quarterly based on your average daily balance.
  • Step rates – dividend rates are determined by your account balance.
  • There is no fee for withdrawals, however, there may be an IRS penalty.
  • There are no annual or monthly fees for active IRA accounts.
  • Accounts inactive for one year are subject to a monthly service charge. (see Fee Schedule)
  • To review an IRA and Roth comparison chart click here.
  • Distributions must begin by April 1 of the year following the year in which you reach age 701/2.  To calculate your Required Minimum Distribution (RMD) click here.
  • Additional information about IRAs can be located at:

Not intended as tax advice.  Please consult a tax professional.  

 

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