Individual Retirement Accounts
Are you saving enough for retirement? Most Americans say they're not.
At Ohio University Credit Union, you can save for your retirement in small steps with an IRA savings account or in larger increments with a share certificate. Either way, you'll be on your way toward a more comfortable future.
New rules might help you save on taxesIf you have a Traditional IRA you may want to convert it to a Roth IRA this year. For more information or to schedule an appointment, contact Cory Corrigan at 597-2859 or by email at ccorrigan@oucu.org
IRA Conversion Analyzer Calculator
Online IRA Center
Visit our online IRA Retirement Central - learn more, try one of the great calculators and start your IRA paperwork!
Traditional and Roth IRA Passbook Savings Accounts
- NO minimum balance or monthly service charge
- NO minimum deposit to open
- Deposits can be made at any time or you can make deposits automatically with payroll deduction
- Competitive dividend rates
IRA Money Max Savings Account
What is it: A tiered iRA savings account. This was previously known as the Easy Save IRA.
S types: S12 is the Traditional; S13 is the Roth
Minimum deposit: None
Maximum: None
Compounding: Monthly, interest is calculated on your daily balance
Easy Save IRA Certificate
Our new Easy Save IRA Certficate is the answer if you're saving each month for your retirement. With our new certificate, you can add to it automatically each month - through payroll deduction or automatic transfers.
Term: 12 months
Minimum deposit: None, automatic deposits are en couraged
Maximum deposit: $6,000 (or your current IRA qualifying contribution amount)
Rate: Rate is fixed for the 12-mo term, current rate
1.00%
apy
Other: Only one per member, per tax year
What is a Traditional IRA?
Traditional IRAs are available to anyone under age 70½ who has income from compensation. Contributions may be tax-deductible and income tax on the account's earnings is deferred until the funds are withdrawn. For guidelines on tax deductibility of your contributions, call an OUCU IRA Specialist at (740) 597- 2800. Consult your tax advisor regarding your specific tax situation. IRA Eligibility Calculator
Contributions
The contribution can be to a traditional IRA, Roth IRA, or split between the two. For tax year 2009 and 2010, you can contribute up to $5,000 to a traditional IRA. And if you’re age 50 or older in each of these years, you can make an extra $1,000 catch-up contribution.
If you’re a single taxpayer and you’re covered by an employer-sponsored retirement plan, or you’re a married taxpayer and either you or your spouse is covered by an employer plan, your eligibility depends on your modified adjusted gross income.
Withdrawals
You have more options to withdraw funds from traditional IRAs without the 10% tax penalty that applies to distributions before age 59½. Withdrawals for qualified higher education expenses are now penalty-free. Penalty-free withdrawals are also allowed for first-time homebuyers to buy or build a home, including settlement, financing, or other closing costs provided the homebuyers haven't owned a home during the past two years.
Penalty-free withdrawals continue to be available for IRA owners who reach age 59½, become disabled, or have qualifying medical expenses.
What is a Roth IRA ?
Contributions to a Roth IRA are made after taxes so there are no tax deductions for these contributions; however, your earnings can grow tax-free so your savings can multiply even faster! IRA Eligibility Calculator
Contributions
You can contribute to a Roth IRA if you have earned compensation and you meet the modified adjusted gross income limits.
Withdrawals
You can make tax-fee withdrawals from a Roth, as long as your funds have been in the account for at least five years and you are either over age 59½, disabled, buying your first home, or paying for qualified education expenses.
Converting a Traditional IRA to a Roth
You may be able to convert your existing Traditional IRA to a Roth IRA. Call an OUCU IRA specialist at (740) 597-2800 for details.
Confused over which IRA is best for you? OUCU IRA Specialists can clearly explain your IRA choices. We recommend you consult your tax advisor regarding your specific tax situation. Cory Corrigan, CPA and vice president, can also assist with your retirement planning. He can be reached at 597-2859 or ccorrigan@oucu.org.
The Benefits of Starting a Roth IRA Early
According to a recent Callahan and Associates Web-based survey, individuals between the ages of 18 and 39 are most likely to open an Individual Retirement Account (IRA). These individuals recognize the importance of starting early to save for retirement.
IRA rules don't have a minimum age requirement, so any young person who has earned income is eligible to open an IRA. Because earned income is the key to qualifying for a Roth, generally, a young adult or even a child would have to be working part time for an employer who collected taxes and reported the earnings to the IRS.
How big are the benefits of starting early? If a 19-year-old began contributing $1,500 each year to a Roth IRA, by age 68 he or she would have about $608,000, assuming an average annual return of 7%.
Money is taxed going into a Roth IRA and accrues interest until it can be withdrawn, completely tax-free, beginning at age 59 ½. While that may be a long way off for young investors, certain withdrawals can be made earlier, including a one-time maximum $10,000 for college expenses and $10,000 for a down payment on a first home.
