IRA Accounts (View Rates)
Individual Retirement Accounts (IRA) accounts are a good way to plan a more secure retirement by supplementing your pension plan and social security benefits. APCI FCU offers Traditional and Roth IRAs with no annual maintenance fees.
A Traditional Individual Retirement account is primarily an individual savings plan. Your contributions may or may not be tax deductible depending on your adjusted gross income and other circumstances. Money contributed and earned are subject to income tax at the time of withdrawal. Withdrawals may be made without penalty when you reach 59 ½. Withdrawals before 59 ½ are subject to a 10% early distribution penalty, (certain exceptions apply). You must begin taking a required annual minimum distribution from your IRA when you turn 70 ½ .
Roth IRAs are funded by after tax dollars; this means that you will not receive any deduction for contributions made to your Roth IRA account. Like a Traditional IRA, earnings in a Roth IRA grow tax deferred, and like a Traditional IRA there is a 10% early distribution penalty if withdrawn before age 59 ½ (certain exceptions apply). However, unlike a Traditional IRA, qualified withdrawals of contributions and earnings from a Roth IRA are tax free. If you expect to be in a higher tax bracket when you reach retirement age, a Roth IRA may be a sound investment. It is possible to convert a Traditional IRA to a Roth IRA. Unlike a Traditional IRA there is no required minimum distribution.
► Both Traditional and Roth IRA Annual Contribution limits are $5,500 for 2018 and $6,000 for 2019. This limit is subject to annual cost-of-living adjustments. If you are age 50 or older by the close of the taxable year, you may make an additional catch-up contribution of $1,000.
For further information, please call 800-821-5104.
- Al Kauffman, Certified IRA Professional at ext. 2840
- Michelle Roxbury, Certified IRA Specialist at ext. 2876
Roth vs. Traditional Individual Retirement Accounts - Use this Calculator to compare.