IRAs

IRA Services

If you don’t have an IRA, you owe it to yourself and your financial future to start your account now.  And even if you have an IRA somewhere else, there are some compelling reasons for moving your account here.

Our rates are competitive, your account is insured up to $250,000, and we pay attention to your personal financial needs, because at Members Choice Credit Union, you are a member, not just a customer.

  • IRA Share Accounts– Build your IRA savings with regular deposits out of your paycheck or by stopping in at one of our convenient locations.
  • IRA Share Certificates– As your balance grows, move the funds into long term savings to earn a better return.  Terms from 18 to 60 months.
  • Traditionaland Roth IRA types are both available.

Starting your IRA, or transferring it to the credit union, could be one of the best financial moves you’ll ever make.  If you would like more details or have any questions, call today.

View our Rates.

IRA Comparison Chart
Traditional IRA Roth IRA
Who can contribute? Anyone under age 70 1/2 who has income from
compensation (or who is filing jointly with a spouse who
earns compensation).
You are eligible if you earn compensation and your MAGI² is less than the defined limits set by Congress. If your MAGI is too high to contribute the annual contribution limit, you may be able to make a smaller contribution.
How much can you contribute? Total combined contributions to Roth and Traditional IRAs up to $5000 through 2011.

If you are age 50 or older you can exceed the regular annual contribution limit by $1,000/year for 2006-2011.

Contributions cannot exceed 100% of your compensation. Reduces contributions that can be made to Roth IRAs.

Total combined contributions to Roth and Traditional IRAs up to $5000 through 2011.

If you are age 50 or older you can exceed the regular annual contribution limit by $1,000/year for 2006-2011.

Contributions cannot exceed 100% of your compensation. Reduces contributions that can be made to traditional IRAs.

Who can make deductible contributions? Fully deductible contributions:

  • Single individuals not active in employer retirement plans (regardless of income).
  • Single individuals active in employer retirement plans with a AGI¹ of $56,000 or less for 2011.
  • Married couples with neither spouse active in an employer retirement plan (regardless of income).
  • Married individuals active in employer retirement plans with joint tax returns showing $90,000 or less for 2011.
  • Married individuals not active in employer retirement plans, but with spouses who are, as long as AGI¹ is $169,000 or less for 2011.

Individuals with incomes exceeding the above limits may be able to deduct an amount less than the amount that can be contributed.

No one can deduct contributions.
What are the tax advantages?
  • Earnings grow tax-deferred until withdrawn.
  • Contributions may be tax-deductible.*
  • Earnings are tax-free if account is open for five tax years and withdrawn for a qualified reason (age 59 1/2, disability, death, or a first-time home purchase).
  • Withdrawals are not requireed to start at age 70 1/2.
When can you withdraw? Withdraw penalty-free for any of the following reasons:

  • Qualifying medical expenses exceeding 7.5% AGI¹
  • Qualifying higher-education expenses
  • First-time home purchase
  • Age 59 1/2 or older
  • Disability
  • Payment to beneficiaries upon the owner’s death
  • Payment of health insurance premiums while
    unemployed for 12 weeks or longer

For reasons other than the above, you could be subject
to a 10% early withdrawal penalty.

  • Regular contributions can be withdrawn tax-free and
    IRS penalty-free at any time.³
  • After the account has been open five tax years,
    earnings can be withdrawn tax-free and penalty-free for
    any of these reasons: age 59 1/2, disability, death, or a
    first time home purchase.

* Not intended as tax advice. Consult a tax
professional.

¹ AGI = Adjusted Gross Income from federal tax form.

² MAGI = Modified Adjusted Gross Income .

³ Penalties may apply fro early withdrawal from an IRA
Certificate.

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