Individual Retirement Accounts
Your long-term retirement savings solution for the future
With an IRA savings account, your earned income can be saved for the future while enjoying certain tax advantages. As you prepare for the future and your retirement, many options are available to you. Our team is here to answer any questions you have and walk you through the process.
IRA Savings Account
- Open with as little as $5
- Competitive rates
- Contributions may be tax deferred for your Traditional IRA
- Earnings and withdrawals may be tax and penalty-free from your Roth IRA
- <50 years of age can contribute up to $7,000 in 2024
- >50 years of age can contribute up to $8,000 in 2024.
- May incur IRS tax penalties for early withdrawal.
Retirement Accounts
With a traditional IRA, eligible contributions may be tax-deductible and are only taxed when withdrawn during retirement, often when you're in a lower tax bracket. There is no age restriction for Traditional IRAs, so anyone at any age can contribute if they are still working. Traditional IRAs are also subject to Required Minimum Distributions (RMDs) starting at age 73.
With a Roth IRA, eligible contributions are not tax deductible. However, qualified distributions are tax-free, regardless of your tax bracket or income level. Roth IRAs are also subject to income limits, restricting how much you can contribute depending on your earnings and filing status. Additionally, Roth IRAs are not subject to RMDs, allowing funds to grow throughout your lifetime, effectively fund education, and even transfer to beneficiaries.
With a Traditional IRA, you can contribute pre-tax dollars. Your money will grow tax-deferred, and withdrawals are taxed as current income after age 59 ½. Roth IRA contributions consist of after-tax funds. Your money will grow tax-free and you can typically make tax-and penalty-free withdrawals after age 59 ½.
Visit any of our branch locations and speak to a Member Services Representative to get started.
An IRA Share Certificate is just like regular Share Certificate except they are for designated retirement funds. IRA Share Certificates provide a low-risk investment option for IRA owners, while also earning a higher dividend rate compared to the Traditional or Roth IRA share. Even if the market changes, your rate is locked for the selected term. IRA Share Certificates are a great option to help boost your retirement savings.
Qualified Retirement Plan rollovers are tax-free transactions in which your balance in a tax-qualified employer-sponsored retirement plan – such as a 401(k), tax-sheltered annuity 403(b), or governmental 457(b) plan – is rolled over to another tax-qualified account such as an IRA. When done properly, a rollover will preserve the tax-sheltered status of the retirement assets.
Prior to requesting a rollover from your employer-sponsored retirement account to an Individual Retirement Account (IRA), you should consider whether the rollover is suitable for you. There may be important differences in features, costs, services, withdrawal options, and other important aspects between your employer-sponsored retirement account and an IRA.
Handy Tools at Your Disposal.
Calculate your budget, see and compare the latest rates and discover what perks you gain for being a member of Education First Federal Credit Union.
Compare Traditional 401 (k) earnings vs. a Roth 401 (k), estimate your retirement income, determine how long your savings will last, and so much more!
Check current rates and find out which ones adhere to your loan type.
When you want a better place to hold your accounts and grow your money, Education First is at the head of the class.