All IRA savings accounts earn a full 1% more in dividends than the regular share savings account.
Traditional
IRA
Human Services ECU
offers a share savings IRA that pays a full 1% more than share savings accounts. Six month, 1 year and 2 year certificates
are also available. A minimum of $1,000.00
is required to set up a share certificate.
Individual
retirement accounts are a smart way to save for the future.
A traditional IRA can be opened and funded without any employer
participation. Contributions and/or earnings are tax-deferred
until retirement. Unlike many employer plans, money in the
account is always accessible; however, until age 59 1/2 there
is a 10 percent early distribution penalty unless you qualify
for an exemption due to one of the following: disability,
qualifying education expenses, unemployment, qualifying first-home
purchases, death, or receipt of your IRA assets in equal payments
over your life expectancy.
Members
under age 70 1/2 may contribute to an IRA at a maximum of
$3,000 per year for tax years 2002 - 2004.
For more
information on a traditional IRA please contact the Member
Services Department at the main office. Click
here for branch office phone number. To view current
rates click here.
Roth
IRA
Roth
IRAs differ from Traditional IRAs in that the money you contribute
to a Roth IRA has already been taxed. So the principal amount
is never subject to taxes or penalties in the future, as long
as you stay within the contribution guidelines. This retirement
plan allows the money you contribute to grow tax-deferred.
If you
do not withdraw any of the earnings until you have had the
plan for at least five years, or satisfy one of the qualifying
events, those tax-deferred earnings become tax-free. Unlike
the traditional IRA, there is no 70 1/2 age limit on making
contributions. You simply need to have earned income equal
to the amount you contribute up to a maximum of $3,000 per
year for tax years 2002 - 2004. Catch up provision if over 50, with a maximum of $4,000 per year.
Click
here for current rates.
Coverdell
Education Savings Account
Coverdell
Education savings account can be used to fund a child's education.
An educational IRA can be opened for any child under the age
of 18. You may contribute a maximum of $2,000 per year per
child until the student's 18th birthday. The child is the
account beneficiary. Like the Roth IRA, contributions to the
account are not tax deductible but earnings accumulate tax
free. Withdrawals from Educational IRAs can be used to pay
for tuition, books, supplies and room and board (for fulltime
students).
If a child
does not attend college, the money must be withdrawn by the
time he or she turns 30. Those earnings are subject to income
tax and the 10% penalty. The Coverdell Education savings account
can also be rolled over without penalty to another member
of the family.
Click
here for current rates.
*
The Credit Union provides no legal advice to members, and
provides the foregoing information from a reliable resource
to give our members a basic understanding of these services.
You should consult with your tax or legal adviser regarding
any particular and the current status of applicable federal
and state laws. |
