Certificates
| IRA Accounts | ||||
| Traditional IRA | Roth IRA | Coverdell Education savings plan | ||
| Description | This IRA allows you to make tax-free contributions | Roth IRA is a non-deductible IRA that provides tax-deferred earnings and tax-free distributions (withdrawals) | This account can be used for educational purposes: primary, secondary, and post-secondary. | |
| Maintenance fee | $10 annual | $10 annual | $10 annual | |
| Minimum balance |
$100 for Accumulation $500 for Certificates |
$100 for Accumulation $500 for Certificates |
$100 for Accumulation $500 for Certificates |
|
| Maximum contribution | $4,000 for individuals, or $4,500 if you are 50 or older | $4,000 for individuals, or $4,500 if you are 50 or older | $2,000 per tax year per child. | |
| Dividends | Tiered rate based on balance | Tiered rate based on balance | Tiered rate based on balance | |
| Other services/benefits |
• Your dollars may stay in the account until you reach age 70 ½, but you may also make penalty free withdrawals as early as 59 ½, or to purchase a home or for higher education.
• Most members can deduct all or part of their annual IRA contributions from their taxes each year. Be sure to check with your tax consultant. |
You can withdraw funds from your Roth IRA when you've held it for five years and have met one of the following criteria:
• You are at least 59 ½ years old |
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| Investment options | Accumulation | Deposits into this account can be added anytime of the year until the maximum contribution limit is reached | ||
| Certificates | IRA Certificates have a specific term and maturity date and allow you to lock in higher dividends with the tax benefits of an IRA. | |||
| Notes/disclosures | The IRS imposes substantial penalties for withdrawal of IRA funds prior to age 59 ½. EFCU | This matures when the beneficiary is 18-25 years of age. If used for expenses other than education, there will be tax penalties. Maturity should be 30 years of age if funds are not used. | ||
