Individual Retirement Accounts
Roth IRA's
The Taxpayers Relief Act of 1997 created this new IRA product that allows persons with earned income to save for retirement using non-deductible taxed money. One of the best features of a Roth IRA is that you may withdraw your contributions tax and penalty free at any time after five years while your earnings in a Roth IRA grow tax-free. Withdrawals on earnings may be subject to both tax and penalty depending on whether the reason for withdrawal is considered to be a qualified distribution.
Contributions to a Roth are allowed at any age as long as the IRA owner has compensation for the tax year for which the contribution is made. You may make contributions to both a Traditional IRA and a Roth IRA; however, the aggregate amount between the two cannot exceed $6,000 per tax year.
Features of Roth IRA Shares include:
- $25 minimum balance to open and earn dividends.
- Dividends are calculated daily and paid quarterly.
- We charge no penalty for early withdrawal. The member is responsible for the 10% Federal Penalty Tax for early withdrawals.
- You and/or your working spouse can deposit a maximum of $6,000 per year if you have earned income of an equivalent amount. Your non-working spouse is eligible for a maximum of $6,000 per year.
- There is a $8.00 annual fee.
"Catch-up" contributions - workers 50 and older can make an additional contribution of $1,000 a year.
Traditional IRA's
If you work and are under age 70 1/2 this year, you can set up a Traditional IRA Share Account regardless of your participation in other retirement plans. With our Traditional IRA's, you receive immediate tax-deferred earnings.
Features of Traditional IRA Shares include:
- $25 minimum balance to open and earn dividends.
- Dividends are calculated daily and paid quarterly.
- We charge no penalty for early withdrawal. The member is responsible for the 10% Federal Penalty Tax for early withdrawals.
- You and/or your working spouse can deposit a maximum of $6,000 per year if you have earned income of an equivalent amount. Your non-working spouse is eligible for a maximum of $6,000 per year.
- There is a $8.00 annual fee.
"Catch-up" contributions - workers 50 and older can make an additional contribution of $1,000 a year.
