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| Individual Retirement Accounts (IRAs) |
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| Individual Retirement Accounts are special savings plans authorized by the Federal Government to help you accumulate funds for your retirement. WestStar offers you a Traditional IRA, a Roth IRA, and an Educational IRA. |
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- Traditional IRA. Even if you have an employer-sponsored pension or profit-sharing plan available to you, your Traditional IRA contribution may be tax deductible. Dividends earned on a Traditional IRA are tax-deferred until the time you withdraw the money.
- Roth IRA. A Roth IRA is a non-deductible account that features tax-free withdrawals for certain distribution reasons. Tax deductions cannot be taken for any of the contributions that you make to a Roth IRA. After five years, you can take a disbursement from your Roth IRA and pay no taxes if the reason qualifies. To be eligible for the Roth IRA, you must have earned income and your modified adjusted gross income cannot exceed certain limits. You may contribute up to $2,000 for individuals and $4,000 if you are married. There is a 10% IRS penalty for premature distribution.
- Educational IRA. An Educational IRA has different goals than other IRA types; it is not a tool for retirement savings. It encourages an affordable, easy-to-manage, regular savings program for children's education. The earnings are tax free if used for qualified expenses and taxable to the designated beneficiary (not the parent or the contributor) if they are withdrawn for another purpose. The depositor can only deposit $500 a year into the child's Education IRA. The Education IRA must be used before the beneficiary's 30th birthday or can be rolled over to another Education IRA that belongs to a family member without paying taxes.
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| There is a minimum deposit of $100 when opening any of these IRA's and a one-time set-up fee. Tiered rates paid on average daily balance. See your tax advisor regarding tax implications. |
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Term Certificate
Money Market Accounts
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NCUA - National Credit Union Administration, a U.S. Government Agency. Your savings federally insured to at least $100,000 and backed by the full faith and credit of the United States Government. WestStar also provides Excess Share Insurance (ESI) for an additional coverage of $250,000. For a detailed explanation of your insurance coverage,
click here for the NCUA Share Insurance Estimator. |
