Individual Retirement Account
To ensure your golden years are, in fact, golden, start preparing for your future financial security today.
In addition to the peace of mind knowing your future is secure, some IRA options include great tax benefits for today. Others let you earn money completely tax-free. It's probably pretty safe to say that no matter who you are, tax-free sure sounds good.
Talk with a personal SWACU expert and we'll tailor a strategy that's best for your situation. We're local, so we'll always be here when you need us.
- Traditional IRA
- Earnings are tax-deferred until withdrawal
- Contributions are tax-deductible on current tax returns
- No initial setup or maintenance fees
- Maximum contribution of $5,000 per year*
- Penalties for early withdrawal, except under certain situations**
- Must begin distributions at 70½ years of age
- IRA certificates and savings account available
Take a look at our current rates.
*Maximum contribution may vary based on income and filing status.
**There is no early withdrawal penalty in the case of: over 59½ years of age, first time home purchase, qualified college expenses, qualified medical expenses, death or disability.
- Roth IRA
- Earnings grow tax-free
- Withdrawals are tax-free
- You may withdraw contributions at any time
- Contributions are not tax-deductible
- Maximum contribution of $5,000 per year*
- Penalties for early withdrawal of earnings, except under certain situations**
- Contributions after age 70½ are allowed
- No mandatory distributions at age 70½
- IRA certificates and savings account available
*Maximum contribution may vary based on income and filing status.
**There is no early withdrawal penalty in the case of: over 59½ years of age, first time home purchase, qualified college expenses, qualified medical expenses, death or disability.
- Coverdell ESA
(The Coverdell Education Savings Account was formerly known as an Education IRA)
- Earnings grow tax-free
- Withdrawals are tax-free
- Contributions are not tax-deductible
- Maximum contribution of $2,000 per year per beneficiary
- Contributions do not count against limits of other IRAs
- Distributions are penalty-free at any time if used for qualified education expenses*
- Distributions must be complete after beneficiary turns 30 years old or dies
- IRA certificates and savings account available
* Penalty will apply if used for something other than qualified education expenses.
