Individual Retirement Accounts (IRAs)

 IRA Certificates

• Fixed dividend rate is set when you open your certificate for a fixed length of time²
• Compounding dividend is paid quarterly and at maturity
• $1,000 or $10,000 minimum deposit to open
• Federally insured by the NCUA up to $250,000

 IRA Savings

• Competitive dividends above standard savings rates
• Traditional and Roth IRA options
• No setup fees
• No monthly or annual maintenance fees
• Annual contribution limits apply (see current contribution limits; $6,000 as of 2019)^1,3
• $25 minimum deposit to open
• Federally insured by the NCUA up to $250,000

Market Rate IRA

• Competitive dividends above standard savings rates
  • Pays a market rate dividend that is declared at the end of each month
• Traditional and Roth IRA options
• No setup fees
• No monthly or annual maintenance fees
• Annual contribution limits apply (see current contribution limits; $6,000 as of 2019)^1,3
• $25 minimum deposit to open
• Federally insured by the NCUA up to $250,000

¹Consult a tax advisor.

²A dividend penalty may be assessed for early withdrawal

³Additional $1,000 "catch-up" contribution allowed for ages 50+

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the greater tax benefit at time of retirement.

Traditional IRA

• No income limits to open
• No minimum contribution requirement
• Contributions are tax-deductible on state and federal income tax¹
• Earnings are tax-deferred until withdrawal (when usually in lower tax bracket)
• Withdrawals can begin at age 59½²
• Mandatory withdrawals at age 70½

Roth IRA

• Income limits apply to open Roth IRA³
• Contributions are NOT tax-deductible
• Earnings are 100% tax-free at withdrawal¹
• Principal contributions can be withdrawn without penalty¹
• Withdrawals on interest can begin at age 59½²
• No mandatory distribution age
• No age limit on making contributions as long as you have earned income 

¹Subject to some minimal conditions. Consult a tax advisor.

²Early withdrawals subject to penalty. Certain exceptions apply, such as healthcare, purchasing first home, etc.

³Consult a tax advisor.

Create an easier transition into college for yourself and your student by setting up a savings account early. A Coverdell Education Savings Account (ESA) provides a tax-free safe place to grow competitive dividends and also financial confidence for a new stage in life.

• Set aside funds for your child's education
• No setup or annual fee
• Dividends grow tax-free
• Withdrawals are tax-free and penalty-free when used for qualified education expenses¹
• Designated beneficiary must be under 18 when contributions are made²
• Contributions are not tax-deductible
• $2,000 maximum annual contribution per child
• The money must be withdrawn by the time he or she turns 30³
• The ESA may be transferred without penalty to another member of the family
• No minimum deposit to open 

¹Qualified expenses include tuition and fees, books, supplies, board, etc. 

²To contribute to an ESA, certain income limits apply. Consult your tax advisor to determine your contribution limit.

³Those earnings are subject to income tax and a 10% penalty.