Retirement Accounts

Individual Retirement Account (IRA)
The IRA was created to allow wage earners an investment plan for retirement, while deferring income tax. Regardless of income or participation in other pension plans, taxes on IRA earnings are deferred until the money is withdrawn. Many wage earners can also deduct some or all of their contribution to their IRA. See your tax advisor for more information.

Members may transfer IRAs from other institutions. For more information, please contact our IRA department or e-mail us at:

Traditional IRA
You can contribute up to $4,000 per year to your credit union IRA, and your spouse can contribute up to $4,000 per year in a separate account. The total contribution amount cannot exceed 100% of your annual income. Your contribution may be tax deductible depending on you annual income amount.

**Workers 50 and older before the end of the taxable year, can make up for the lost time with additional IRA contributions over and above the new maximum limits as follows:

For year 2002-2005

2006 and thereafter


Contributions can be made up to April 15th of the year following the applicable year.

Roth IRA
The contributions are not deductible on your Federal income tax return, but there is a potentially greater tax benefit. Money left in a Roth IRA for at least five years and withdrawn after age 59 will not be taxed, no matter what your tax bracket or income level. Unlike the traditional IRA, you do not have to start withdrawing money when you reach age 70.
Education IRA
The education IRA helps parents save for their children's education. You may contribute up to $2,000 annually per child. Your funds may be withdrawn, tax free, for education purposes. Deposits must be made before student turns 18 and disbursed by age 30.

View IRA rates and terms      Frequently asked questions


Questions Traditional IRA Roth IRA Education IRA
What is the maximum contribution?
(Maximum of $4,000 total for Traditional and Roth combined).
$4,000 or 100% of earned income, whichever is less.
(see above)**
(See below)
$2,000 per year per child
(until age 18).

Are contributions tax-deductible? Yes No No

Dividend earnings taxed? Yes, upon withdrawal. No, earnings grow tax-free. No, earnings grow tax-free.

Contribution restrictions? Yes, AGI* must be $60,000 or less for singles, $80,000 or less for married couples
(will increase each year).
$95,000 or less phase out begins and reaches ceiling at $110,000
filing joint $150,000, phase out reaches a ceiling at $160,000.
Yes, AGI* of contributor must be less than $190,000 for singles, less than $220,000 for married couples.

Penalties for early withdrawals? None if you are over 59 ; first time home purchase; higher education; or health/disability emergency. None if you are over 59 ; first time home purchase; or health/disability emergency
(money must be in account five years minimum in all cases).
Not applicable

Any restrictions for those with employer retirement plans? No
(Spouse may now participate in an employer sponsored plan with no impact on the non-working spouse).
No No

Maximum age for contributions 70 No limits No contributions allowed after age 18
*Adjusted Gross Income