Individual Retirement Accounts (IRAs)

 

Roth IRAs

Traditional IRAs

IRA Contribution Limits

Transfers and Rollovers


Individual Retirement Accounts have improved through the years to help meet the needs of savers… and today's IRAs are better than ever! While building savings for retirement, IRAs can be tapped into for special needs such as a first-time home purchase or medical expense… and offer more options for tax planning. MCCU IRAs offer:

  • LOW minimum of $100 to open
  • NO SET-UP OR ANNUAL FEES!
  • Competitive yields… check these great rates!
  • Available for Traditional and Roth IRAs
  • PLUS… IRAs are separately insured up to $250,000 by the NCUA. This coverage is in addition to the $100,000 NCUA coverage on your other MCCU deposits.

 

Want to maximize your IRA earnings?
Choose an IRA Certificate:

  • Minimum deposit as low as $1,000
  • Choose terms from 12 to 60 months
  • Higher yields than IRA savings accounts… check our rates!
  • Still-higher yields for deposits of $10,000 or more … check our rates!
  • NO SET-UP OR ANNUAL FEES!
  • Available for Traditional and Roth IRAs

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Roth vs. the Traditional IRA… Compare the features.

 

Roth IRA

Roth IRAs can only receive non-deductible contributions... but when distribution (which is not required with a Roth IRA) begins at retirement (retirement age specified by IRS), it is TAX FREE! And there are other features:

  • After five years, withdrawal of the principal and earned dividends is TAX FREE for those age 59 1/2 or older.
  • Have a pension plan? It doesn't matter! Your Roth distributions will still be TAX FREE when made at retirement (retirement age specified by IRS).
  • PLUS…Roth IRAs offer a variety of penalty-free withdrawal options BEFORE you reach age 59 1/2 (ask your tax advisor for specifics).
  • NO SET-UP OR ANNUAL FEES!

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Traditional IRA

Savings in this IRA are taxed as income. When distribution begins at retirement, your distributions are taxed at the retirement-level bracket (depending on your tax situation, see your tax advisor). Contributions may be tax-deductible, based on income and other factors (check with your tax advisor). Features include:

  • Withdrawal of the principal and earned dividends can begin penalty-free for those age 59 1/2 or older
  • Traditional IRA distributions are taxed at the retirement-level income bracket (depending on time of withdrawal and your tax bracket).
  • Traditional IRAs can offer a tax deduction for qualified savers. Consult your tax advisor for specific details.
  • ALL earned dividends are tax-deferred, regardless of income.
  • NO SET-UP OR ANNUAL FEES!

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IRA Contribution Limits

Tax Year
Standard Limit Younger than Age 50
Contribution Limit Age 50 or Over
2013 $5,500 $6,500
2014 $5,500 $6,500

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IRA Transfers and Rollovers

If you wish to transfer IRA funds from other institutions to MCCU, or if you have a pension fund ready to mature, we can accommodate you: * Pension Plans and 401K funds usually eligible (see your tax advisor) * NO SET-UP OR ANNUAL FEES!

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MCCU Supports Your Retirement Goals!

Whether you want a Traditional IRA, Roth IRA, or need help with a rollover or transfer, MCCU is here to help. Ask your tax advisor for current IRA details and a recommendation for which account is best for you. Then see a MCCU representative for assistance in opening your account. Just stop by either office!

 

Note: While every effort has been made to ensure the accuracy of all material contained on this website, some areas are subject to change based on regulatory interpretation or additional congressional action.

 

Consult your tax advisor for information regarding IRAs.

 

How much will you need to save for a comfortable retirement? Use our Retirement Calculator to find out.

 

 

 


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