Individual Retirement Accounts (IRAs)
Whether you're just starting out in your career or have already made a name for yourself, it's a good idea to think about planning for retirement. With an IRA from State Employees Credit Union, you'll be ready. You can earn a great interest rate on your money until it's time to stop working and start living the good life.
- Traditional IRA
- Earnings tax-deferred until withdrawal
- Contributions may be tax-deductible (consult tax advisor)
- No set up or maintenance fees
- Maximum contribution of $5,000 per year in 2010 with additional "catch up" contribution of $1,000 for owners age 50 and older*
- Penalty-free distributions begin at age 59½
- Penalties for early withdrawal, except under certain circumstances**
- Mandatory distributions begin at age 70½
*Maximum contribution may vary based on income and filing status.
**There is no early withdrawal penalty in the case of: over 59½ years of age, first time home purchase, qualified college expenses, qualified medical expenses, death or disability.
- Roth IRA
- No set up or maintenance fees
- Contributions are not tax deductible
- Earnings grow tax-free
- Withdrawals are tax-free
- You may withdraw contributions at any time
- Contributions after 70½ allowed
- No mandatory distributions at age 70½
- Maximum contribution of $5,000 per year in 2010 with an additional "Catch up" contribution of $1,000 for owners age 50 and older*
- Penalties for early withdrawal of interest, except under certain circumstances**
*Maximum contribution may vary based on income and filing status.
**There is no early withdrawal penalty in the case of: over 59½ years of age, first time home purchase, qualified college expenses, qualified medical expenses, death or disability.
- Coverdell (Education) IRA
- Earnings grow tax-free
- Withdrawals are tax-free
- Contributions are not tax-deductible
- Maximum contribution of $2,000 per year per beneficiary
- Contributions do not count against limits of other IRAs
- Distributions are penalty-free for qualified educational expenses*
- Distributions must be complete after beneficiary turns 30 years of age or dies
*Penalty will apply if used for something other than qualified educational expense.
