Individual Retirement Accounts (IRAs)
Make Your Golden Years More Golden
Saving more earlier is the best way to secure a comfortable retirement. Every little step adds up. It’s hard to think of retirement when it’s far off. But the earlier you start saving, the better off you’ll be. Small amounts added together over time can lead to a worry-free retirement.
Explore your options with our IRA accounts to help you save for a brighter financial future.
Our IRAs provide competitive returns on your deposits. Check out all of our retirement accounts below.
Yes! Your Funds are Safe & Insured
Your IRA accounts are FEDERALLY insured to at least $250,000 (separately from savings accounts) and backed by the full faith and credit of THE UNITED STATES GOVERNMENT, National Credit Union Administration, a U.S. Government Agency. Visit mycreditunion.gov to learn more about your Share Insurance Coverage and to access resources including a Share Insurance estimator tool, publications, videos, and more.
Which IRA is right for you?*
If you would like to avoid paying taxes on the contributions you make now, a Traditional IRA may be the best choice for you.
If you would rather avoid taxes when you make withdrawals from your retirement account, a Roth IRA may be the best choice for you.
*Consult a tax professional for tax advice on which type of IRA may best suit your needs.
| Compare | Traditional IRA | Roth IRA |
|---|---|---|
| Definition | You make contributions with money you may be able to deduct on your tax return, and any earnings can potentially grow tax-deferred until you withdraw them in retirement. Many retirees find themselves in a lower tax bracket then they were in pre-retirement, so the tax-deferral means the money may be taxed at a lower rate. | You make contributions with money you've already paid taxes on (after-tax), and your money may potentially grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met. |
| Income Restrictions | No income restrictions on eligibility to contribute, but possibly on deductibility. | You may not be eligible to contribute if your income is $153k or more in tax year 2023 for single filers or $228k or more in tax year 2023 for joint filers. |
| Contributions | Contributions may be tax-deductible | Contribution may be withdrawn at any time without taxes or penalties. |
| Earnings | Earnings may grow tax-deferred. You generally pay taxes when you make withdrawals, often in retirement. | Earnings may be withdrawn tax-free and penalty-free once you reach age 59 1/2 and the account has been open for at least five years. |
| Taxes | Pay taxes later. | Pay taxes now. |
| Age Restrictions | None, as long as the account holder has income. | No age restrictions for contributions. |
| Reguired Minimum Distributions (RMDs) | Must begin taking required minimum distributions (RMDs) at age 73. | No required minimum distributions (RMDs) |
Traditional IRA
Traditional IRA accounts allow you to save for retirement with tax-deferred earnings and a possible tax-deduction. Contributions to the Traditional IRA may be tax-deductible and investments grow tax-free depending on the taxpayer’s income, tax-filing status, and other factors*.
No setup fees
No monthly or annual maintenance fees
Competitive rates
Dividends are paid quarterly
Fully insured separately up to $250,000 by the NCUA
We offer IRA certificates- a great option for rollovers with a higher earning potential (penalty for early IRA Certificate withdrawal)
No income limits to open
No minimum contribution required
If deductible, contributions lower taxable income in the year they are made.
Annual contribution limits apply based on IRS Guidelines. The deadline for making any previous year contributions is April 15th.
You can start withdrawing without penalty when you’re age 59 ½.
The IRS requires minimum distributions on Traditional IRAs after you reach your required beginning date. We give you options to help with your required distributions.
*Consult a tax professional for tax advice on which type of IRA may best suit your needs.
Rollover IRA
Are You Ready to Roll Over Your 401(k)?
A 401(k) account is a great way to save for your retirement. With a 401(k) account, a piece of your paycheck can be put away each month, and your employer often contributes a matching sum (usually up to a certain amount) to help you boost your savings. Also, taxes on this money are not paid until funds are withdrawn from your account.
But, when you’re changing jobs, or you’re looking for a new job, it is essential to consider your options when it comes to this money. We can walk you through the big questions when it comes to your 401(k) and can help you weigh the options to determine what is right for you.
One of Your Best Options is to Rollover the Funds into an IRA
You can either transfer the funds to a Traditional IRA that you already have, or open a new IRA to receive the funds. There is no dollar limit on how much 401(k) money you can transfer to an IRA - and your account is fully insured up to $250,000 by the NCUA!
Rollover a distribution from a qualified retirement plan into a Traditional IRA to avoid the mandatory federal income tax withholding and retain tax-deferred status of the amount you roll over.
Required minimum distributions begin after you reach your required beginning date.
Ideal for anyone retiring or leaving a job.
Roth IRA
Roth IRAs are growing in popularity as they allow you to contribute your after-tax dollars which can be withdrawn tax and penalty free. As a result, contributions are not tax deductible, however, qualified distributions are tax free*.
No setup fees
No monthly or annual maintenance fees
Competitive rates
Dividends are paid quarterly
Fully insured separately up to $250,000 by the NCUA
We offer IRA Certificates- a great option for rollovers with a higher earning potential (penalty for early IRA Certificate withdrawal)
No age limit on making contributions as long as you have earned income
No mandatory distribution ages
There are limitations to the amount a member can contribute annually to their Roth IRA based on IRS Guidelines. The deadline for making any previous year contributions is April 15th. Owners must be age 59 ½ or meet the qualified distribution guidelines and the account must be open five (5) years to make a withdrawal without penalty.
*Consult a tax professional for tax advice on which type of IRA may best suit your needs.
To: Holders of Traditional IRA Accounts Withholding Notice (form 2317)
Payments from your IRA are subject to federal income tax withholding, unless you elect no withholding. You may change your withholding election at any time prior to receipt of a payment. To change your withholding election, complete the appropriate form provided by your credit union.
Withholding from IRA payments, when combined with other withholding, MAY relieve you from payment of estimated income taxes. However, your withholding election does not affect the amount of income tax you pay.
You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are insufficient.
*Consult a tax professional for tax advice on which type of IRA may best suit your needs.
EIFCU is not a legal or tax advisor. Consult your tax professional before making legal or tax related investment decisions.
You cannot exceed the IRS contribution limits for any given year and must meet certain other eligibility requirements.
Deductibility depends on tax filing status, participation in an employer plan and modified adjustment gross income (MAGI).
You must start taking distributions by April 1 following the year in which you turn 73 (72 if you reach age 72 before January 1, 2023) (70 1/2 if you reach age 70 1/2 before January 1, 2020.
While you may withdraw contributions tax fee at any time, withdrawal of Roth IRA earnings before you reach age 59 1/2 and before the account is five years old may be subject to tax and penalties.