Compare Accounts
| Traditional IRA1 | Roth IRA1 | Coverdell ESA1 | |
|---|---|---|---|
| PUrpose | Retirement savings | Retirement savings | Education savings |
| Contributions | Fully deductible unless you participate in an employer-sponsored plan
Deductible based on your income if you participate in an employer-sponsored plan |
Not tax deductible | Not tax deductible |
| Contribution limits | $5,500/year in 2018 if you’re under 50 Contribute additional $1,000 if you’re over 50 |
$5,500/year in 2018 if you’re under 50 Contribute additional $1,000 if you’re over 50 |
Based on taxpayer’s modified adjusted gross income $2,000/year per child up to the age of 18 |
| Withdrawals | Withdrawals treated as taxable income
No penalties if you withdraw at or after age 59.5 Must make required minimum withdrawals at age 70.5 |
Tax-free withdrawals
May start withdrawing at age 59.5 without penalty if funds have been in account for 5 years No required minimum withdrawals |
Tax-free if used for qualified education expenses
10% tax on portion exceeding education expenses May withdraw at any time Balances must be distributed before or within 30 days after the beneficiary turns 30 |
| Requirements | You must earn income
You will not reach age 70.5 by the end of the year |
You must earn income
|
Anyone can contribute
Beneficiary must be age 0-18 |
| Open an account | |||
1IRA = Individual Retirement Account. ESA = Education Savings Account.
Retirement Planning Options
Educators IRAs
If you are interested in investing your retirement funds with Educators through a Traditional IRA or Roth IRA, we offer two options: the IRA Money Market Savings Account and the IRA Share Certificate. Your IRA funds are insured by the National Credit Union Administration (NCUA) to an aggregate amount of $250,000 (separate from your non-IRA share insurance coverage).
The IRA Money Market account offers the same rates as our High Yield Money Market Account, but the minimum starting balance is just $25. You also have the option to set up automatic payroll deduction.
The IRA Share Certificate offers the same rates as our other share certificates and provides the additional security of a guaranteed rate during the Share Certificate term.
Other Retirement Savings
Would you like to explore other investment alternatives for your retirement savings? Contact one of our CUNA1 Investment Advisors who can help you find the investments that best meets your needs.
High Yield Money Market Account
| Dividend Rate | APY1 | Minimum Balance Required to eARN apy2 |
|---|---|---|
| 0.06% | 0.06% | <$2,500 |
| 0.08% | 0.08% | $2,500 |
| 0.11% | 0.11% | $10,000 |
| 0.14% | 0.14% | $25,000 |
| 0.19% | 0.19% | $50,000 |
1APY = Annual Percentage Yield. Rates will not change until the next tier is reached (ex. balance of $2,500 to $9,999 will have a rate of 0.08% APY). Rates are subject to change after account opening.
2For IRA Money Market the minimum to open account is $25. Minimum to open regular Money Market account is $1000, $10 fee per month for daily balances below $1000. Penalties apply for “under the minimum daily balance”, which may reduce earnings.
Premium Money Market Accounts (regular and IRA accounts)
| dividend rate | apy1 | Minimum Balance Required to Earn apy2 |
|---|---|---|
| 0.559% | 0.56% | $10,000 |
| 1.124% | 1.13% | $100,000 |
| 1.677% | 1.69% | $250,000 |
1APY = Annual Percentage Yield. Rates will not change until the next tier is reached (ex. balance of $10,000 to $99,999.99 will have a rate of 0.559% APY). Rates are subject to change after the account is opened.
2For Premium Money Market the minimum to open account is $10,000.
Points for Perks cannot be used to increase the rates on the Premium Money Market accounts.