Certificate Accounts offer higher dividend rates in exchange for a long-term investment. Terms vary from 6 months to 5 years and are a safe and guaranteed growth option for money you do not need for immediate use.
Dividends are compounded and paid monthly, early withdrawal penalties apply.
Jumbo rates are also available with a minimum opening deposit of $100,000.
Though the name IRA stands for Individual Retirement Account, don't be deceived; these accounts can be for much more than retirement. Always consult your tax advisor regarding the tax advantages and/or implication concerning all types of IRAs.
A Traditional IRA can be opened and funded without any employer participation. Contributions and/or earnings are tax-deferred until withdrawal at retirement. The money in the account is always accessible, however a 10 percent early distribution penalty may apply if you withdraw funds prior to turning 59 ½ years of age. Exemptions to the early distribution policy include: disability, qualifying education expenses, unemployment, qualifying first home purchase, death, or receipt of your IRA assets in equal payments over your life expectancy.
Contact the Credit Union for information regarding current Traditional IRA contribution guidelines and limitations.
The primary difference between a Traditional and Roth IRA is when the money in the account is taxed. Money that you contribute into 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.
If you do not withdraw any of the earnings until you have had the plan for at least five years and satisfy one of the qualifying events, your tax-deferred earning become tax-free. Unlike the Traditional IRA, there is no age limit on contributions.
If the child does not attend college, the money must be withdrawn by the time(s) he turns 30, but those earnings are subject to income tax and a 10% penalty.
Coverdell Educational IRAs can be used to fund a child's education. They can be opened for any child under the age of 18, with a maximum annual contribution of $2000 per year until the child's 18th birthday. Withdrawals can be used to pay for tuition, books, supplies and room and board (for full-time students).
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The National Credit Union Administration (NCUA) provides insurance coverage of up to at least $250,000 for your Credit Union account(s). To learn more about the type of accounts and the total amounts that the NCUA may insure, visit the NCUA at http://webapps.ncua.gov/Ins/