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Checking/Savings
Frequently Asked Questions

Individual Retirement Accounts

Whether you are planning for your retirement or your child’s future, you should consider an IRA. With the possible tax advantages, typically higher interest rates, and safe investment options, an IRA may be right for you.


Take a look at our plans and competitive interest rates. Discuss with your tax advisor about the benefits and potential tax advantages an IRA plan will offer you.


Traditional IRA

  • Eligibility requirements include having earned compensation and being under the age of 70 ½. Seek the advice of a tax advisor for further information.
  • Tax-deferred earnings
  • Possible tax deductions
  • Maximum combined contribution into Traditional and Roth IRA’s for 2009 is $5000.00 per individual
  • Individuals age 50 and older can make additional contributions up to $1000.00 per tax year for a total of up to $6000.00
  • Withdrawals can be made without penalty starting at age 59 ½
Roth IRA
  • Eligibility requirements include having earned compensation and falling within the required income limits set by the IRS. Seek the advice of a tax advisor for further information.
  • Tax-deferred earnings
  • Possible tax-free withdrawal of earnings
  • Maximum combined contribution into Traditional and Roth IRA’s for 2009 is $5000.00 per individual
  • Individuals age 50 and older can make additional contributions up to $1000.00 per tax year for a total of up to $6000.00
  • Withdrawals can be made tax free and penalty free after the IRA has been opened for 5 years for any qualified reason below:
  • Age 59 ½
  • Disability
  • Death
  • First-time home purchase
Coverdell IRA (Education IRA)
This IRA is opened on behalf of the minor child who will benefit from the contributions made by their parent or legal guardian, for education purposes.

Tax advantages on withdrawals for qualified education expenses include but are not limited to:
  • Tuition
  • Fees
  • Books
  • Maximum contribution per child annually for 2009 is $2000.00
  • Funds can be transferred from one child’s account to another child’s account within the family

IRA Certificate of Deposit (CD)

Investing your IRA in a CD can give you a higher interest rate without losing the tax benefits an IRA provides. Early withdrawal penalties may apply, depending on the term of the CD. Contact Extra Credit Union at (586) 276-3000 for more information.


Current Rate Information
Check out our current interest rates.

 

*APY is Annual Percentage Yield. Dividends are paid and compounded quarterly. Penalty may be imposed for early withdrawal. Contact your personal attorney or tax advisor for advice on your personal situation.