Individual Retirement Accounts (IRA)
A Traditional IRA is a tax favored plan to accumulate retirement funds. Your contributions may be tax deductible and dividend earnings are tax deferred. Anyone under the age of 70 1/2 that has earned income is eligible to open an IRA.
A Roth IRA is a retirement account where you pay taxes on the money going into your account, then all future withdrawals are tax free. There are no up-front tax deductions for Roth contributions. Roth distributions are tax-free if done following the correct procedure. You must have earned income to contribute to a Roth IRA, and must meet MAGI limits.
Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government, the National Credit Union Administration, a U.S. Government Agency, and up to an additional $250,000 by Excess Share Insurance, for a total of $500,000.
IRAs are separately insured to $250,000 by the National Credit Union Administration, a US Government Agency, and an additional $250,000 by Excess Share Insurance, for a total of $500,000.
For more specific information regarding IRAs contact your local branch.