An Individual Retirement Account (IRA) is a special type of account that permits members to save money during their employment years to cover expenses after retirement and to help with their children's education. The Credit Union offers three IRA products: The Traditional IRA, the Roth IRA and the Education IRA. Most wage earners, including active participants in a company-sponsored pension plan and the self-employed, are eligible to open an IRA. Traditional IRA Traditional IRAs are specially intended for retirement after age 59½. The biggest advantages are that certain contributions to this type of IRA are tax deductible in the year the contributions are made, and taxes due on the earned interest are deferred until the funds are withdrawn. The credit union offers both a regular IRA account and IRA Certificates of Deposit. Roth IRA Roth IRA contributions are not tax deductible. On the other hand, while traditional IRA dividends are tax deferred, Roth IRA withdrawals are tax free IF the account holder has had a Roth IRA for more than five years; and is age 59½ years or older; or the holder has become permanently disabled; or is purchasing a first home; or dies. Contributions can be made after age 70½, and no withdrawals are required during the account holder's life. Education IRA An Education IRA gives flexibility to families saving for college tuition and other related expenses. Up to $2000 per year may be deposited for each child under age 18. Anyone can make a contribution - parents, grandparents, relatives, friends - up to a total of $2000per year. These contributions are not tax deductible, but dividends earned are tax free. Plus, funds not used for one child may be transferred to other children within the family without being subject to income taxes. ** Member accounts in this credit union are federally insured to $250,000 by the National Credit Union Share Insurance Fund.

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