Individual Retirement Accounts (IRA) Products

Individual Retirement Accounts (IRAs)

Aspire FCU offers many IRA products to enhance your retirement plan. You may choose from Traditional and Roth IRAs, Coverdell Education Savings Accounts and an IRA Accumulator, which utilizes the convenience of Direct Deposit to build up your savings automatically. Most importantly, your funds are safe at your Credit Union. Your accounts are insured up to at least $250,000 by the National Credit Union Administration, NCUA, a US Government Agency.

You will find a comprehensive description of IRA plans and regulations below. Please consult your tax advisor for guidance. Contributions may be fully or partially tax deductible or non-deductible. Please consult your tax advisor for your specific tax advantages.

Traditional IRAs

• Dividends are tax-deferred until distribution. No penalties on withdrawals if taxpayer is: 1) Age 59 ½, 2) Buying a first home ($10,000 lifetime maximum), 3) Paying for college expenses or 4) Disabled or deceased. Withdrawals of contributions and earnings are subject to a 10% penalty unless taxpayer is covered under one of the aforementioned circumstances.
• Contributions can be made at any time until April 15th of the following year.
• The deductibility of your contribution varies depending on your Modified Adjusted Gross Income (MAGI) and whether you have a retirement plan at work.
• Withdrawals must begin at age 70 ½.

Roth IRAs

• Dividends are tax free upon distribution
• Contributions cannot be tax deductions
• Contributions may be withdrawn tax-free at any time. Earnings may be withdrawn tax-free if account has been open 5 years and taxpayer is: 1) Age 59 ½, 2) Buying a first home ($10,000 lifetime maximum) or 3) Disabled or deceased. Withdrawals of earnings are subject to a 10% penalty unless taxpayer is covered under one of the aforementioned circumstances. Withdrawals of earnings for college expenses will be subject to taxes but not penalties.
• Contributions from conversion IRAs must remain on deposit for 5 years to avoid withdrawal penalty.
• Contributions can be made at any time until April 15th of the following year

IRA Accumulator

This IRA is perfect for individuals that find it easier to make a number of smaller contributions over a longer period of time. The IRA Accumulator can be classified as Traditional or Roth. Once it is classified, you will be able to enjoy all the features and restrictions of that particular type of IRA.

• Open an account with as little as $5
• No set term
• Earn competitive, variable dividend rates
• Make automatic deposits through direct deposit

Coverdell Educational Savings Account – Educational IRA

This Educational IRA is ideal for those individuals looking to save for the educational costs of a named beneficiary.

• Open an account with as little as $500
• Available terms: 3 months to 60 months
• Tiered dividend levels and rates
• Distributions are generally tax free if used for these types of expenses:
  • Expenses incurred in connection with the enrollment or attendance of the beneficiary at a public, private or religious elementary or secondary school
  • Post-secondary tuition, fees, textbooks, supplies and equipment
  • Post-secondary room and board expense – only if the beneficiary is enrolled on at least a half-time basis at an eligible institution
  • Contributions can be made at any time during a calendar year
  • Contribute up to $2,000 annually for each beneficiary up to their age 18.