IRA’S – indianheadcu.org

Individual Retirement Accounts (IRA)

Individual Retirement Accounts, or IRA, is a tax-advantaged savings plan designed to help individuals save for retirement. It allows you to contribute money, which can grow tax-deferred or tax-free depending on the type of IRA, until you withdraw it in retirement ( be sure to check with your tax advisor before making any decisions).

Indianhead Credit Union offers Traditional and Roth IRAs.

Traditional IRA

Contributions are usually made with pre-taxed funds
Must have earned income to make contributions
Contributions may be tax deductible
Earnings grow tax-deferred until withdrawal in retirement, which is then taxed as income
Anyone can contribute to a Traditional IRA, regardless of income
You must begin taking a distribution out the account at age 73, called Required Minimum Distribution
Distributions before age 59 ½ may be subject to a 10% penalty
Distributions after age 59 ½ can be taken penalty-free
Maximum contribution limit of $7000 for those under age 50, and $8000 for those age 50 or older in 2025

Roth IRA

Contributions are made with already taxed funds
Must have earned income to contribute
Grows tax-free and qualified withdrawals in retirement are also tax-free
No Required Minimum Distributions
You can withdraw contributions at any time without penalty or tax
To avoid penalties and taxes on earnings, you typically need to be 59 ½ or old and held the Roth IRA for at least five (5) years
Contribution limits are based on your modified adjusted gross income (MAGI)
Maximum contribution limit of $7000 for those under age 50, and $8000 for those age 50 or older in 2025

IRA Passbook Account – Traditional or Roth

$25 minimum deposit to open an IRA Passbook Account
Dividends paid monthly on balances over $100
Dividends are based on a tiered rate
Contributions can be made at any time
Competitive rates
An agreement between the member and the Credit Union must be signed before the account is opened
All transactions are governed by IRS regulations and the IRA account agreement
Federally insured by NCUA

IRA Share Certificate – Traditional or Roth

$1,000 minimum deposit to open a 18, 24, or 36 month IRA Share Certificate
$5,000 minimum deposit to open a 48 month IRA Share Certificate
$10,000 minimum deposit to open a 60 month IRA Share Certificate
Dividends are paid quarterly
Early withdrawals could be subject to an early withdrawal penalty
Contribution is made at account opening only
Competitive rates
An agreement between the member and the Credit Union must be signed before the account is opened
All transactions are governed by IRS regulations and the IRA account agreement
Federally insured by NCUA