At Central Macomb Community Credit Union, we want to help you save the money you need for a comfortable future through investing in an Individual Retirement Account. An IRA is a tax-advantaged savings plan built around your individual needs. It's easy to start, affordable, and can make a world of difference in retirement living.
We offer Traditional, Roth, and Coverdell with varied deposit options. For your convenience deposits can be made by mail, in person, virtual branch, or by payroll deduction.
IRA account dividends are earned daily and posted quarterly. On IRA Certificates dividends are earned daily and posted monthly.
Traditional IRA. If you’re under age 70½ and earn compensation, you can put up to $3,000 a year in a traditional IRA, even if you don’t qualify for a tax-deduction. Contributions are often made with before-tax dollars. Your earnings and deductible contributions aren’t taxed until withdrawal, which can begin at 59 ½, but must begin at age 70 ½. Funds can be used penalty free for a first-time home purchase ($10,000 limit), higher-education expenses, certain medical expenses, and other qualifying reasons.
Roth IRA. This account is available to single filers with income under $110,000 and joint filers with income under $160,000. You can contribute up to $3,000 a year with after-tax dollars – and qualified withdrawals, including earnings, are tax-free. As in a traditional IRA, funds are available for a first-time home purchase, educational, medical expenses, and certain other qualifying reasons. However, you have access to your regular contributions tax-free and penalty-free at any time, and for any reason. And there are no mandatory withdrawals, so you could leave money to your heirs tax-free. If you’re over 50, you can also take advantage of “catch-up” contributions.
Coverdell. You may be able to save up to $2,000 per child per year in a Coverdell Education Savings Account (ESA) here at CMCCU. There are a number of benefits to a Coverdell ESA. While your contributions are made with after-tax dollars, the earnings and withdrawals are tax-free if the money is used for qualified educational expenses. And you or any of your family members may be able to contribute to the account, up to the $2,000 total annual limit. You can continue saving each year until the child reaches 18. Then when the money is withdrawn, it can be applied to a broad range of qualified expenses for college, university and public or private K-12 education – including tuition, tutoring, room and board, and in some cases, even computer equipment. A unique Coverdell ESA feature is your ability to transfer funds from one child’s account to another child’s account in the same family. Also, a Coverdell ESA can be used in conjunction with the HOPE credit and Lifetime Learning credit, but not for the same expenses. For the answers to all of your IRA questions, call one of our IRA Specialists today at (586) 466-7800.
This article is not intended to provide tax advice. Contact a tax professional.
