IRA

Individual Retirement Account

An Individual Retirement Account (IRA) is a savings account that allows you to save money for retirement in a tax-advantaged manner. IRAs were created in the United States in the mid-'70s in an effort to encourage consumers to save additional funds for retirement*.

Dividends and Interest are compounded monthly on the daily balance in the account. You can make contributions to the account via direct deposit, automatic transfer, or payroll deduction.

LOYALTY Credit Union offers many types of individual retirement accounts with various terms. Traditional, Roth, or Education IRAs can be established and funds can be deposited into a savings or certificate of deposit IRA.

Traditional IRA

Contributions to a traditional IRA can be made for the previous year up to April 15 of the current year. At age 59½, you can begin to enjoy your hard-earned savings with no penalty or fees.

Roth IRA

A Roth IRA is similar to the standard IRA but with a twist. As long as certain requirements are met, all withdrawals are completely free from federal income tax*. The drawback is that your annual contributions are not tax-deductible. A Roth IRA allows you to contribute a predetermined amount, determined annually by the IRS, and your earnings are always tax deferred until withdrawn. Once you turn 59½, you can enjoy the savings penalty-free and tax-free. Penalties are even waived for first-time home buyers and health/disability emergencies.

Coverdell Education IRA

When does one start to save for their child's education? It's never too soon! LOYALTY CU can help you pay for higher education expenses with a Coverdell Education IRA. Early withdrawal penalties are not applicable, and contributions to a Coverdell Education IRA are not tax deductible*.

Check with one of our helpful representatives for current interest rates and further information on individual retirement accounts*. Call 850-474-0970 for more details.

*Check with your tax advisor for information regarding the tax implications of IRAs. See an associate for account details. Funds on deposit are insured by the NCUA.

IRA Accumulator

Start saving for your retirement by opening an IRA Accumulator Savings Account. The minimum deposit is $40.00. You may make deposits into this account at any time, even direct deposit funds through payroll deduction. Dividends are compounded monthly and paid monthly. Once you reach $250.00, you may choose to invest your dollars into an IRA Term Share Certificate of Deposit. Contribute to your IRA Accumulator with Cents-to-Savings.