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Individual Retirement Account (IRA) |
An Individual Retirement Account (IRA) is an account that provides tax benefits when used to save money for retirement. Whether you are just starting to plan for retirement, changing careers, or searching for ways to maximize your lifestyle during retirement, we have options to fit your needs. We offer the flexibility of a variable rate liquid savings plan and a fixed rate one to five year term CD.
ECU offers a 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:
Education Savings Account (ESA) - An 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 an ESA when it is created. Contributions to an 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.
ECU’s IRA program details:
Not intended as tax advice. Please consult a tax professional
* See Disclosures for additional information.
ECU offers a 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.
Education Savings Account (ESA) - An 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 an ESA when it is created. Contributions to an 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.
ECU’s IRA program details:
- Minimum to open: Savings Plan: $25
CD plan: $5,000 - Minimum to earn dividends: Savings Plan: $0.01
CD plan: $5,000 - Monthly Service Fee: Savings Plan:$5.00 per month if the account is inactive for 12 consecutive months
CD plan: None - Transaction limits: Savings Plan: None but may subject to IRS penalties, see IRS Publication 590-B
CD plan: Must be held until maturity - Transaction Fees: Savings and CD plans: $25.00 outgoing transfer fee, see Schedule of Fees
- Early Withdrawal Penalty: CD plan: Loss of 9 months interest
- Deposits are Federally insured up to $250,000 per individual depositor through NCUA
- Interest Rates: Savings plan: Tiered interest rates, rate is determined by average account balance, compounds and pay quarterly. if account is closed before the quarterly posting of accrued dividends, no dividends will be paid, for current rate, see Current Deposit Rates
CD Plan:Fixed Interest Rate, rate is determined when CD is opened, compounds and pays annually, an early withdrawal penalty will be assessed if closed early. - Statements are issued quarterly: you may sign up for e statements through Virtual Branch
- Distributions must begin by April 1 of the year following the year in which you reach age 701/2.
Not intended as tax advice. Please consult a tax professional
* See Disclosures for additional information.
Additional information about IRAs can be located at:
IRS Publication 590-A - Contributions to Individual Retirement Arrangements (IRAs)
IRS Publication 590-B - Distributions from Individual Retirement Arrangements (IRAs)
