IRAs

One of the greatest challenges facing American workers is assuring their financial security in retirement. It’s important to rely on your own resources, including IRAs and other retirement plans, to support your retirement lifestyle.

Listen to our podcast: IRAs—The Basics and Benefits, Plain and Simple

 

All of our IRAs have the following features:

  • High Annual Percentage Yield (APY)

  • Federally insured by the National Credit Union Administration (NCUA) at an additional $250,000 above the $250,000 of insurance on other deposits at the credit union

  • No administration fees

  • Minimum deposit, after opening, of $20 and minimum withdrawal of $500, except for pre-arranged retirement disbursement schedules or to close the account

  • 18 or 60 month certificate

  • Choice between fixed or variable rate

 

Click here for rates!

 

Variable Rate IRAFixed Rate IRA
  • Open with as little as $50
  • Dividend rate can change monthly
  • Dividends compounded daily and credited monthly
  • Open with as little as $500
  • Rate at time of opening is fixed for the term of the certificate
  • Dividends compounded and credited monthly
Traditional versus Roth, don’t know which is right for you? Here’s an overview:

For tax year 2013 and beyond, total contributions to a combination of Traditional and Roth IRAs cannot exceed the amount allowed:

  • Under age 50: Lesser of 100% of compensation or $5,500 (non-working spouse may also contribute up to $5,500)
  • Age 50 or better: Lesser of 100% of compensation or $6,500 (non-working spouse may also contribute up to $6,500)

Traditional IRA

A special tax-deferred savings plan authorized by the Federal Government. You do not pay annual taxes on the earnings you accumulate in your IRA. All earnings and deductible contributions are taxed at ordinary income tax rate when withdrawn.

Who Can Contribute

Any individual who has not reached the age of 70½ for the entire tax year is qualified to contribute if they or their spouse has earned income. (Income limits determined whether the contributions are tax deductible)

Contributions

Many receive a 100% deduction for their income taxes on their annual contribution.

Traditional IRA Distributions

All non-deductible contributions are received tax-free. All earnings and deductible contributions are taxed at ordinary income tax rate when withdrawn. 

Roth IRA

Individual retirement account to which you can make annual non-deductible contributions. Unlike a Traditional IRA in which your earnings are tax-deferred, Roth IRA earnings can be tax-free. Contributions can be withdrawn tax-free at any time.

Who Can Contribute

There is no 70½ age limit on making contributions. You need to have earned income equal to the amount you contribute up to a maximum amount set each year.

Contributions

These contributions are non-deductible.

Distributions

Contributions are not taxable upon withdrawal. Earnings are not taxable if the following two stipulations are met: 1) distribution occurs after the fifth tax year* since first contribution was made to the Roth IRA and 2) one of the following distributions is made:

  • After age 59½ 
  • Due to death 
  • Due to disability 
  • First time home buyer, up to $10,000 

Taxation of Roth IRA Distributions
Contributions Earnings
Tax-Free + Penalty-Free Penalty-Free (10%)
Tax-free and penalty-free, at any time, for any reason

Meets 5-year test

AND

Deceased

Age 59½

Disabled

First-home purchase

Deceased

Age 59½

Disabled

First-home purchase

Education expenses

Large medical expenses

Health insurance premiums while unemployed

If you have any questions regarding your current IRA or are interested in opening a new one, please contact a Member Services Representative at your local WESTconsin office.

*Note: WESTconsin Credit Union is providing information only and is not intending to provide specific advice or recommendations for individuals. We suggest you contact your tax advisor in regard to your personal IRA plan.

 

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National Credit Union Administration,
a U.S. Government Agency