IRAs and ESA to Secure Your Future

Plan for your future with an Individual Retirement Account (IRA) or for your child’s future with an Education Savings Account (ESA).

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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 2015 if you’re under 50
Contribute additional $1,000 if you’re over 50
$5,500/year in 2015 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 withdraw prior to age 59.5 for a first-time home purchase2 or if you become disabled

May start withdrawing at age 59.5 without penalty if funds have been in account for 5 years

No required minimum withdrawals3

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

You will not reach age 70.5 by the end of the year

Anyone can contribute

Beneficiary must be age 0-18

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1IRA = Individual Retirement Account. ESA = Education Savings Account.
2The lifetime limit for exemption on a first-time home purchase is $10,000.
3Only contributions (not earnings) may be withdrawn anytime without penalty.

Other Retirement Planning Options

Educators IRAs

If you are interested in investing your retirement funds with Educators rather than 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 CFS1 Financial Advisors who can help you find the investments that best meets your needs.

High Yield Money Market Account

Dividend Rate APY1 Minimum2
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.
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.


1Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA / SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Educators Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

Non-deposit investment products and services are not Federally insured by NCUA.

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