IRAs - Traditional, Roth, Education
What is An IRA?
An IRA (Individual Retirement Account)is a retirement investing account for individuals that allows annual contributions up to a specified maximum amount. Whether or not a tax deduction is allowed depends on the individuals income and whether or not they participate in an employer-sponsored retirement plan.
Our IRA Programs are flexible and dependable. All IRA's are insured to $250,000 with no risk to principal. For more information cocerning our IRA options, please contact a Credit Union representative at 631-291-9160.
Coverdell Educational Savings Account (Education IRA)
A tax-favored account (formerly called an Education IRA) that is a trust/custodial account established in the US funded with contributions(post tax) to pay for the qualified education expenses of a designated beneficiary.
It is important to note that earnings and withdrawals from a Coverdell Educational Savings Account are tax-free if used for those educational purposes. At the time of contributions, the designated beneficiary must be under age 18 or a special needs beneficiary.
Total contributions from all contributors for any one child may not exceed $2,000 per year.
Contributions from individuals whose adjusted gross income exceeds $95,000 ($190,000 for married taxpayers filing jointly) for the year are restricted.
Amounts contributed to a Coverdell account do not count against the annual contribution limits for individual IRAs.
Roth IRA
An Individual Retirement Account featuring non-deductible contributions and tax-free growth.
A Roth IRA is an Individual Retirement Account that provides tax-free growth. As a result, it's the simplest - and potentially the most effective - sheltered IRA account.
Roth has an extra advantage if you think taxes will probably rise in the future, since you're paying now rather than later.
The Roth IRA also has the avantage of being much simpler than a traditional IRA in that it requires no special reporting to the IRS.
