Individual Retirement Account (IRAs)
It’s your hard-earned money. Enjoy it to its fullest by investing in your golden years now. WestStar Credit Union will help you meet your goals, with two great IRA options — a traditional and Roth account — each with unique benefits.
Whatever option you go with, an IRA is always a tax-advantaged*, low-cost account insured by the NCUA. Take advantage of monthly dividends above standard savings rates and competitive annual fees. Open your future possibilities today — it only takes $100 to get started.
- Save for retirement with tax advantages*
- Earn competitive dividends higher than regular savings
- Pays monthly dividends
- Available in traditional and Roth
- Annual contribution limits apply*
- $1,000 annual “catch up” contributions allowed for ages 50 and better
- Funds can be used to purchase term certificates within IRA
- $25 annual fee
- No minimum balance requirements
- Federally insured
- $100 minimum deposit to open
There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.
Traditional IRA
- No income limits to open
- No minimum contribution requirement
- Contributions are tax deductible on state and federal income tax*
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59 ½
- Early withdrawals subject to penalty*
- Mandatory withdrawals at age 70 ½
Roth IRA
- Prepare for qualified medical expenses
- Income limits to be eligible to open Roth IRA*
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal*
- Principal contributions can be withdrawn without penalty*
- Withdrawals on interest can begin at age 59 ½
- Early withdrawals on interest subject to penalty*
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
Higher education can become a financial burden. A Coverdell Education Savings Account (ESA) is designed to help lighten the load.
- Set aside funds for your child's education
- Dividends grow tax-free*
- Withdrawals are tax-free and penalty-free when used for qualifying education expenses*
- Designated beneficiary must be under 18 when contributions are made
- To contribute to an ESA, certain income limits apply*
- Contributions are not tax deductible
- Contributions are allowed regardless of traditional or Roth IRA participation
- $2,000 maximum annual contribution per child
- The money must be withdrawn by the time beneficiary turns 30
- The ESA may be transferred without penalty to another member of the family
*Consult a tax advisor.