Individual Retirement Accounts (IRA)
Whether you're eyeing a comfortable retirement or aiming to secure a brighter future for your loved ones through education, we've got the IRA for you.
Types of IRA accounts
IRAs are accounts used to save funds for retirement or education expenses. We offer three types of IRAs:
TRADITIONAL IRA
- Offers tax-deferred earnings and the possibility for tax-deductible contributions.
- Contributions can be made if you earn compensation and will not reach age 70 ½ by the end of the year.
- Earnings are not taxed until they are withdrawn.
- The ability to defer taxes on the earnings, and to withdraw in a year when you may be in a lower tax bracket, can mean more after-tax dollars for your retirement.
- Members under 70 ½ should consult with their tax advisors to avoid possible penalties.
- The Required Minimum Distribution (RMD) age is currently 73.
- The option to delay the first RMD payment in the year in which 73 years of age is met is available.
Roth IRA
- Offers generous incentives to boost your retirement savings.
- Contributions are NEVER tax-deductible.
- Money in your Roth IRA, including earnings, can be withdrawn tax free.
- You must conform to certain tax requirements to get this tax-free advantage.
Education IRA
- Helps pay for your child’s education expenses, such as tuition, fees, books, supplies, and in some cases room and board and computers.
- Contributions are NEVER tax deductible.
- No taxes are due on withdrawals used for qualified higher-education expenses.
- Contributions can be made until the child reaches 18.
The credit union does not offer tax advice. Please consult with a tax advisor.
Ready to Get Started?
Stop by one of our convenient locations and we'll be happy to assist you.
FREQUENTLY ASKED QUESTIONS
What types of IRAs does DuGood offer?
We offer the following types of IRAs:
- Traditional
- Roth
- Educational IRA.
What is an IRA?
An IRA (Individual Retirement Account) is a special savings plan created by the Taxpayer Relief Act of 1997 to help people save for retirement.
What is a Roth IRA?
A Roth IRA is an Individual Retirement Account which allows one to save for retirement. Contributions can be withdrawn tax-free and penalty-free at all times.
Earnings may be tax-free and penalty-free if certain conditions are met:
- Roth IRA must be opened for 5 years.
AND one of the following must apply:
- the owner is age 59 1/2 or older.
- the owner is disabled.
- distribution is being used as a first-time home purchase.
- the owner is deceased.
The credit union does not offer tax advice. Please consult with a tax advisor.
How can I open an IRA account?
To open an IRA Account with DuGood, please visit one of our local branches.