Prepare for a secure retirement by establishing an IRA at Shoreline Credit Union.

Our IRA options also include Coverdell Education Accounts to help fund a child’s or a grandchild’s college education.

It takes careful planning and consistent saving to enjoy the retirement you deserve. An Individual Retirement Account (IRA) is a great way to save for retirement and earn higher dividends. We are here to help you with both traditional IRAs and Roth IRAs.

Traditional IRAs

You will be able to save for retirement and possibly deduct your contributions with a traditional IRA. Here are some of the benefits:

• Contributions may be tax deductible.
• Interest grows tax-deferred until withdrawn.
• Funds can be used to purchase a first home ($10,000 lifetime maximum).
• Funds can be used for qualifying education expenses.
• Contributions can be made if you are under age 70 ½ and have qualifying income.

Some of the withdrawal conditions are listed below:

• Early withdrawals are subject to 10 percent penalty unless you are disabled or paying for qualified expenses (e.g., first home, education).
• Mandatory distributions start at age 70 ½.

Roth IRAs

A Roth IRA helps you prepare for retirement by sheltering your investment earnings from income tax and offering these benefits:

• If you have qualified income, you may contribute regardless of your age.
• Although you cannot deduct your contributions when you make them, all earnings are tax free when you or your beneficiary withdraw them provided the account has been open at least five years and the funds are used for qualified expenses (age 59 ½, disability, death or a first-time home purchase with a $10,000 lifetime maximum).
• You may withdraw regular contributions tax- and penalty-free at any time.
• You are not required to take minimum distributions after age 70 ½.

It is important to be aware that early withdrawals of earnings are subject to 10 percent penalty unless you are disabled or paying for qualified expenses.

Coverdell Educational IRAs

Education IRAs allow you to set aside money for your child’s or grandchild’s education expenses:

• You may contribute for a beneficiary child or grandchild under age 18 or according to special needs exceptions.
• All withdrawals, including earnings, are tax-free for qualified education expenses.
• You may rollover funds to another family member’s Coverdell Educational IRA account.
• The student may be full-time or part-time.
• Your contributions are nondeductible.
• You must use withdrawals for qualified education expenses.
• You must withdraw funds by the time the child beneficiary reaches age 30 or according to special needs exceptions defined by law.

Your IRA options include an IRA share account or a certificate with terms that range from 12 to 60 months. The minimum deposit for certificates is $1,000. For more information, contact us.