IRAs - Individual Retirement Accounts
An IRA is a tax-advantaged* savings plan built around your individual needs. It's easy to start, affordable, and can make a world of difference in your retirement living.
Bay Area Credit Union IRAs offer competitive dividend rates, insured deposits, payroll deduction, NO annual maintenance fees, comfortable minimum deposit requirements and personalized answers to your questions.
• Traditional IRA
• Roth IRA
• Coverdell Education Savings Account
• Rollover IRAs
• IRA Share Certificates
Traditional IRA*
The Traditional IRA has a widespread appeal due to its tax-deferred status and the fact that many people are eligible. You qualify if you are under age 70 ½ and earn compensation. There are no income limits for contributions. Combined contributions to a Roth and/or Traditional IRA are limited to $3000 per person, per year. Contributions may be fully or partially tax-deductible. Earnings are tax-deferred until withdrawn. Contribution limits adjust annually.
Roth IRA*
Contributions to a Roth IRA are not tax-deductible, however a Roth IRA offers the opportunity for tax-free earnings. Roth IRA contributions are always made with after-tax dollars and income restrictions do apply. There are no age restrictions. Regular contributions can be withdrawn at any time for any reason. Total combined contributions to a Roth IRA and a Traditional IRA cannot exceed $3000 per person, per year. Contribution limits adjust annually.
Coverdell Education Savings Account*
Starting with contributions for 2002, you can save up to $2000 per child per year in a Coverdell Education Savings Account. Although contributions are not tax-deductible, withdrawals (including earnings) are tax-free and penalty-free if used for qualified education expenses.
Rollover IRAs*
When you retire or change jobs, rolling your retirement plan assets into a Bay Area Credit Union IRA instead of taking a cash payout helps you delay federal income taxes, and avoid mandatory federal withholding and applicable penalties.
IRA Share Certificates
Regardless which type of IRA account you select, an IRA Share Certificate is an attractive investment option. Terms range from 6 months to 60 months.
*Not intended to provide tax advice. Consult your tax advisor.
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