 |
|
Roth IRA
Regardless of your current employer retirement plans, an IRA can offer additional retirement security for eligible members. Both Traditional and Roth IRAs are available in a Savings or Certificate option, with MEFCU representatives ready to help explain your options.
Deposits for any tax year may be made until April 15th of the following year, and can be set up through payroll deduction. As with any MEFCU deposit account, IRA deposits are insured up to $500,000.
Take a step toward freedom during retirement today!
Rates
|
|
| IRAs/ESAs105/17/2013 |
| IRA/ESA savings |
.45% |
.45% |
|
|
| Certificates105/17/2013 |
| $1,000 - $9,999.99 |
.20% |
.20% |
| $10,000 - $24,999.99 |
.25% |
.25% |
| $25,000 - $49,999.99 |
.30% |
.30% |
| $50,000 - $99,999.99 |
.30% |
.30% |
| $100,000 + |
.35% |
.35% |
| $1,000 - $9,999.99 |
.25% |
.25% |
| $10,000 - $24,999.99 |
.30% |
.30% |
| $25,000 - $49,999.99 |
.35% |
.35% |
| $50,000 - $99,999.99 |
.35% |
.35% |
| $100,000 + |
.40% |
.40% |
| $1,000 - $9,999.99 |
.35% |
.35% |
| $10,000 - $24,999.99 |
.40% |
.40% |
| $25,000 - $49,999.99 |
.45% |
.45% |
| $50,000 - $99,999.99 |
.45% |
.45% |
| $100,000 + |
.50% |
.50% |
| $1,000 - $9,999.99 |
.45% |
.45% |
| $10,000 - $24,999.99 |
.50% |
.50% |
| $25,000 - $49,999.99 |
.55% |
.55% |
| $50,000 - $99,999.99 |
.55% |
.55% |
| $100,000 + |
.60% |
.60% |
| $1,000 - $9,999.99 |
.65% |
.65% |
| $10,000 - $24,999.99 |
.70% |
.70% |
| $25,000 - $49,999.99 |
.75% |
.75% |
| $50,000 - $99,999.99 |
.75% |
.75% |
| $100,000 + |
.80% |
.80% |
| $1,000 + |
.90% |
.90% |
| $1,000 + |
1.00% |
1.00% |
Benefits
The Roth IRA allows you to make contributions that will not be taxed upon withdrawal. Plus, there are no age-requirement distributions; funds may remain in the account as long as you like.
- Individuals with qualified income may make non-deductible contributions, regardless of age
- All withdrawals, including earnings, 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)
Invest money today and potentially withdraw tax-free in retirement!
Rollover/Transfer
Whether you are changing jobs, nearing retirement, or just want to consolidate multiple retirement accounts, we can help answer any rollover questions you may have. With so many options, our members find the ability to turn to non-commissioned MEFCU staff a great benefit of membership! We can help you select the account that fits your needs and ensure your funds are transferred properly. Meet with a representative today, or call to learn more. MEFCU can help consolidate all your retirement accounts into one that makes sense for you.
Traditional versus Roth
There are two main types of IRAs to help you save for retirement: Traditional and Roth. Use this IRA comparison chart to help you determine which one may be right for you. However, always consult with your tax professional regarding your specific situation.
|
|
Traditional
|
Roth
|
|
Tax advantage:
|
Tax-deferred earnings
|
Tax-free earnings
|
|
Tax deductibility:
|
Contributions may be tax deductible
|
Non-deductible contributions
|
|
Eligibility:
Age -
Income -
|
Under age 70 ½1
No income limits1
|
Any age1
Based on income
|
|
Required minimum distributions:
|
After age 70 1/2
|
None
|
|
Taxation at withdrawal:
|
Withdrawals of pre-tax contributions and any earnings are taxable when distributed
|
Contributions are always withdrawn tax-free
Earnings are federally tax-free if you’ve had your Roth IRA for five years and one of the following conditions is met: age 59½, death, disability, qualified first-time home purchase
|
|
Penalties on early withdrawal:
|
10% federal penalty tax on withdrawals before age 59½ unless an exception applies.2
|
Distributions from contributions are penalty-free.
10% federal penalty tax on withdrawals of earnings before age 59½ unless an exception applies.3
|
1 Must have employment related compensation
2 For Traditional IRAs, penalty-free withdrawals include but are not limited to: qualified higher education expenses; qualified first home purchase (lifetime limit of $10,000); certain major medical expenses; certain long-term unemployment expenses; disability; or substantially equal periodic payments.
3 A distribution from a Roth IRA is federally tax-free and penalty-free provided that the five-year holding period has been satisfied and one of the following conditions is met: age 59½, suffer a disability, or qualified first time home purchase.
Contribution Limits
|
|
Under Age 50
|
Over Age 50
|
|
2012
|
$5,000
|
$6,000
|
|
2013
|
$5,500
|
$6,500
|
|
|
