Individual Retirement Accounts (IRA)
Retirement is expensive, and financial security doesn't just happen without some planning. With an IRA from Connexus, you can let your money work for you.
IRAs gained popularity after some exciting changes to the rules and regulations governing IRA accounts. Our knowledgeable team offers exceptional hands-on experience, and staff members are easy to contact regarding any financial concerns.
- Summary
- Traditional and Roth available
- NCUA insured up to $250,000
- Direct rollover from IRA and 401K accounts
- Flexible distribution options: annually, quarterly, monthly, or semi-annually
- Distributions over the beneficiaries' life expectancy, which lowers the tax burden for your beneficiaries
- It's never too late to start planning for retirement as long as you create a plan and set goals for yourself. Get started today.
- Types of IRAs
Connexus offers both Traditional and Roth IRAs as retirement fund options to help you be as prepared as possible for a pleasant retirement. Please note that the 2009 contribution limit for Traditional or Roth IRAs is $5,000.00 with an additional $1,000 catch-up contribution if you are age 50 or older.
Traditional IRAs
To help significantly reduce your tax liability, a Traditional IRA allows you to make tax-deductible contributions for you or your spouse as long as you meet the requirements set by the IRS.
Your earnings in a Traditional IRA also grow tax deferred until you withdraw them. You can deposit up to a set dollar amount per year in an IRA.
Funds in a Traditional IRA must remain there until you are aged 59.5 or you will be assessed a 10% penalty fee by the IRS.
You must start withdrawing funds by the age of 70.5; however there are provisions that allow for early withdrawals.
Roth IRAs
WIth a Roth IRA, all earnings grow tax-free, and there is no age requirement for beginning distributions from this account. Though this IRA is not tax-deductible, it offers provisions for qualified distributions, and there is no required distribution.
Once you've selected a plan to fit your needs, you decide on the investment:
IRA Supreme
This investment works similar to a regular savings plan, as the funds will be easily accessible and you are not locked into a term. Minimum deposit is $100, unless you perform payroll contributions, in which case there is no minimum. Contributions may also be made via direct deposit.
IRA Certificate
Similar to other certificates offered by your credit union, this investment plan offers a higher interest rate than the IRA Supreme but requires that you commit your funds for a specified term. Minimum deposit is $500.
IMPORTANT: Because these accounts have many different features and the deposits are based on your personal tax situation, contact your tax or legal professional or the IRS for specific tax information or facts about state or local income taxes. This is intended to provide general information on federal regulations pertaining to Traditional and Roth IRAs. It is not meant to provide legal advice or individual tax recommendations.
