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It’s never too early to start planning for your retirement-or your child’s or grandchild’s education. Your IRA options at Shoreline Credit Union include: Traditional IRAs, Roth IRAs and Coverdell Education Accounts.
Traditional IRA
The Traditional IRA helps you save for your retirement, and contributions may be deductible.
- Individuals under age 70 ½ with qualifying income may contribute
- Early withdrawals are subject to 10% penalty unless disabled or paying for qualified expenses (e.g., first home, education)
- Mandatory distributions at age 70 ½
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- Interest grows tax-deferred until withdrawn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 to pay for qualifying education expenses
Roth IRA
A Roth IRA helps you save for your retirement by sheltering your earnings from income tax.
- Individuals with qualified income may contribute, regardless of age
- Contributions are nondeductible
- Early withdrawals of earnings are subject to 10% penalty unless disable or paying for qualified expenses (e.g., first home)
- No distribution requirements
Benefits
- All withdrawals, including earning, are tax-free if the account has been open at least 5 years and are used for qualified expenses
- No requirement to withdraw at any age
- Contributions can be made at any age, with qualified income
- Funds can be used to purchase a first home ($10,000 lifetime maximum)
Coverdell Education Accounts
Helps you save for a child’s or grandchild’s education.
- Individuals of any age may contribute for a beneficiary child or grandchild under age 8, or according to special needs exceptions
- Contributions are nondeductible
- Must be used for qualified education expenses
- Student can be either full-time or part-time
- Funds must be withdrawn by the time the child beneficiary reaches age 30, or according to special needs exception defined by law
Benefits
- All withdrawals, including earnings, are tax-free for qualified education expenses
- Funds can be rolled over to another family member’s CEA
Your IRA options include an IRA share accounts or a certificate with terms that range from 12 to 60 months. Minimum deposit for certificates is $1,000. |
