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Traditional IRAs

If you haven't started thinking about retirement, today is the perfect time to start. IRAs through US Community Credit Union are a great tool to put you on the right track to meet your retirement goals. If you’re currently a “High Earner”, a Traditional IRA might be right for you. With a Traditional IRA, you pay taxes in your retirement years, when your tax rate will probably be lower.

Traditional IRA Benefits:

  • Contributions may be tax deductible in the year the contributions are made.

  • Taxes due on the earned interest are deferred until funds are withdrawn.

  • Mandatory withdrawal date April 1 of the year following the calendar year in which you reach age 70½, if you were born before July 1, 1949.

    Mandatory withdrawal date April 1 of the year following the calendar year in which you reach age 72, if you were born after Jun 30, 1949.

  • Withdrawals can begin at age 59½.

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Roth IRAs

US Community Credit Union offers several IRA options to fit your specific needs including the Traditional IRA mentioned above and Roth IRAs. Roth IRAs are a great option for individuals early in their career. Most of the time, people early in their careers are in a lower tax bracket, so paying taxes on a Roth IRA cost less. So when retirement knocks on the door, you won’t be paying any taxes on withdrawals.

Roth IRA Benefits:

  • Contributions are post-tax, and growth may be tax-free.
  • Since withdrawals are not reportable income, they won't affect your adjusted gross income during retirement.
  • Contributions can be made after age 70½, and no withdrawals are required during the accountholder's life.
  • Withdrawals from a Roth IRA are tax- and penalty-free as long as the account has been open for at least five tax years and you are either over 59 1/2, disabled or buying a first home.
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Coverdell Savings Accounts

We realize you want what's best for your children, and gaining a quality education is high on that list. That's why we offer a tax advantaged way to save for those upcoming educational costs.

Coverdell Savings Account Benefits:

  • Gives flexibility to families saving for college tuition and other related expenses.
  • Up to $2,000 per year may be deposited for each child under age 18.
  • Anyone can make a contribution - parents, grandparents, relatives, or friends
  • Earnings and withdrawals are tax free if used for educational expense by age 30
  • Can be transferred to another child in family
  • 10% penalty if used for another purpose
  • These contributions are not tax deductible, but dividends earned are tax free.

*This information should not be considered as advice. Please consult your tax advisor for information on your unique situation.