Individual Retirement Accounts (IRAs)
Stockbrokers have a lot of opinions about what makes the best investment — and most revolve around making themselves richer. At MCCU, we believe it's very simple: the best investment is always investing in yourself.
Our traditional and Roth IRAs allow you to do so risk free. There are no setup fees, so it's easy to get started. Prepare for a secure financial future today with a MountainCrest Credit Union IRA.
- Tax-advantaged retirement savings1
- Competitive dividends above standard savings rates
- Compounded daily, paid monthly
- Traditional and Roth IRA options
- No setup fees
- $15 annual maintenance fee
- Additional $1,000 "catch-up" contribution allowed for ages 50+
- No minimum deposit to open
- Federally insured to $250,000 by NCUA
Both traditional and Roth IRAs offer unique tax advantages. A Roth IRA, if you are eligible to open, can sometimes provide greater tax relief in the long run. While a traditional IRA typically provides some immediate tax relief as well as upon withdrawal.
- No income limits to open
- No minimum contribution requirement
- Contributions are tax deductible on state and federal income tax2
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty3
- Mandatory withdrawals at age 70½
- Income limits to be eligible to open Roth IRA1
- Contributions are NOT tax deductible
- Earnings are 100% tax free at withdrawal2
- Principal contributions can be withdrawn without penalty2
- Withdrawals on dividends can begin at age 59½
- Early withdrawals on dividends subject to penalty3
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
A Coverdell Education Savings Account (formerly called an Education IRA) provides similar tax-free earnings to an IRA. The funds, however, are dedicated to a very specific purpose — a child's future education expenses.
- Set aside funds for your child's education
- No setup fee
- $15 annual fee
- Dividends grow tax-free
- Withdrawals are tax-free and penalty-free when used for qualified education expenses4
- Designated beneficiary must be under 18 when contributions are made
- To contribute to an ESA, certain income limits apply5
- Contributions are not tax deductible
- $2,000 maximum annual contribution per child
- The money must be withdrawn by the time he or she turns 306
- The ESA may be transferred without penalty to another member of the family
- $25 minimum deposit to open
1Consult a tax advisor.
2Subject to some minimal conditions. Consult a tax advisor.
3Certain exceptions apply, such as healthcare, purchasing first home, etc.
4Qualified expenses include tuition and fees, books, supplies, board, etc.
5Consult your tax advisor to determine your contribution limit.
6Those earnings are subject to income tax and a 10% penalty.