Individual Retirement Account (IRA)
An Individual Retirement Account (IRA) is 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 and no transaction fees.
► 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.
Traditional IRA
- Contributions may be tax deductible depending on IRA holders adjusted gross income and other circumstances
- Earnings grow tax deferred
- Money contributed and earned is subject to income tax at the time of withdrawal
- Withdrawals may be made without penalty when IRA holder reaches 59 ½
- Withdrawals before 59 ½ are subject to a 10% early distribution penalty (certain exceptions apply)
- Annual minimum distributions are required when the IRA holder turns 70 ½
Roth IRA
- Funded by after-tax dollars; contributions are not initially tax-deductible
- Earnings grow tax deferred
- Withdrawals before 59 ½ are subject to a 10% early distribution penalty (certain exceptions apply)
- Qualified withdrawals of contributions and earnings are tax free
- No required minimum distribution regardless of age
For further information, please call 800-821-5104.
- Al Kauffman, Certified IRA Professional at ext. 2840
- Michelle Roxbury, Certified IRA Specialist at ext. 2876