IRA's

Putting the “Individual” in Individual Retirement Account
TFCU is pleased to offer five different types of IRAs, specifically designed to make your educational and retirement dreams come true. You can compare our different IRA options below. But first check out the common benefits all our IRAs have to offer:

• No monthly fees
• Flexibility – Contributions may be made in lump sums or by regular deposits to the IRA Share throughout the year
• Dividends are paid monthly
• Terms ranging from 3 to 36 months
• Current IRA and IRA Share Certificate rates are posted on our Rate Board

Traditional IRA
The Traditional IRA allows you to defer taxes on your contributions and earnings until the funds are withdrawn, and there is no minimum balance required to open it. The maximum annual contribution is $3,000 per individual. The maximum contribution for individuals 50+ is $3,500. Annual IRA contributions may also be wholly or partially tax-deductible in the year they are made. Once you reach age 70 1/2. you are required to begin taking distributions.

Conduit IRA
Perhaps you’re changing jobs and are undecided about what to do with your pension plan or company retirement account. An IRA composed entirely of one or more rollovers from qualified pension plans may at a later date be rolled back into a qualified pension plan. The TFCU Conduit IRA allows you to keep your pension plan funds at the Credit Union until you decide how to best handle your retirement funds. Simply come to a convenient branch, and we will handle the rollover paperwork from your employer.

Roth IRA
The Roth IRA has a number of benefits a Traditional IRA does not have, depending upon your retirement needs. The Roth IRA features tax-free withdrawals for certain reasons after the five-year holding period. Roth IRA contributions are not deductible (they’re taxed the year they’re earned) so members who expect to be in a higher tax bracket when they retire may find greater benefit in a Roth IRA. The maximum annual contribution is $3,000 per individual. The maximum contribution for individuals 50+ is $3,500. With a Roth IRA, there are no mandatory distributions beginning at age 70 1/2.

Coverdell Education Savings Plan (Previously Educational IRA)
An excellent way to start saving for a child or grandchild’s college education, this account features tax-free withdrawals for education expenses. Contributions are nondeductible, so distributions from the account are penalty-free and tax-free. There is a maximum annual contribution of $2,000 per year per child.

IRA Certificates
IRA Share Certificates allow members with higher balances to earn higher dividends. These IRAs are available with a minimum deposit of $1,000, with even higher yields available for Premium Certificates of at least $10,000. Certificate terms range from 3 to 36 months.

TFCU recommends consulting your tax advisor for complete IRS guidelines and rules regarding the tax-deductibility of all IRAs.