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Individual Retirement Accounts (IRAs)



Individual Retirement Account (IRA) is an insured, tax-sheltered retirement savings plan.  Savings grow tax-deferred and some or all contributions may be eligible for a tax deduction.  Dividends are paid and compounded quarterly and are based on the average daily account balance.  A minimum deposit of $500 is required.

IRA Share Certificates are also available with minimum required deposit of $1,000 and terms for 12,24,36 and 48 months.

The Education IRA allows you to save for any post-secondary education by investing up to $500 a year per child younger than age 18.  The contribution is not  tax-deductible. Instead, earnings grow tax-free and you pay no taxes or penalties on money withdrawn to pay for qualified higher-education expenses, such as tuition and fees, before the beneficiary reaches age 30. Otherwise you pay taxes on any earnings, plus additional 10% penalty.

The Roth IRA Like the Education IRA, contributions are not tax deductible.  Instead, you pay no taxes when you withdraw the money provided it’s been in the account at least five years and:  You are older than 59 ½, or you become disabled, or you die and it's paid to your beneficiary, or you use the money for a first-time house purchase ($10,000 lifetime withdrawal limit).  Unlike the traditional IRA, which requires you begin withdrawing money at age 70 ½ , the Roth IRA has no such requirement.  You can let the money keep working, while earnings continue to grow tax-free, for as long as you like.

For complete disclosure of IRA Limits/Requirements, please consult with a Campus Credit Union Representatitve.

* Please see a Tax Professional for all tax related questions.