Traditional and Roth IRAs are personal savings plans that allow you to keep more money for yourself and pay less to Uncle Sam.
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Best if you want to save on taxes now or if you think you will be in a lower tax bracket when you retire. |
Best if you want to save on taxes when you retire and you don't need the tax break now. It is also a more flexible investment because you can withdraw regular contributions at any time, tax-fee and penalty free. You do not have to take mandatory distributions at age 70½ . |
| Interest Rate |
View Current Rates |
View Current Rates |
| Compound Frequency |
Quarterly |
Quarterly |
| Eligibility* (Who Can Contribute?) |
You are eligible if you have not reached age 70½ at the end of the year and you earn compensation (or your spouse earns compensation and you file a joint return).
Anyone receiving an eligible rollover distribution from a traditional qualified retirement plan who wants to continue to defer income taxes by moving the money to a traditional IRA. |
You are eligible if your MAGI* is less than the limit set by Congress and you earn compensation (or your spouse earns compensation and you file a joint return).
If your MAGI is too high to contribute the annual contribution limit, you may be able to make a smaller contribution.
Funds can be moved directly from a traditional qualified retirement plan into a Roth IRA (subject to the normal rules for making an IRA conversion contribution). |
| Income Eligibility |
- Wages
- Salaries
- Tips
- Professional fees
- Bonuses
- Taxable alimony
- Commissions received as a percentage of profits or sales price
- Self employment income from a sole proprietorship
- Partnership income for which services have been provided
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- Wages
- Salaries
- Tips
- Professional fees
- Bonuses
- Taxable alimony
- Commissions received as a percentage of profits or sales price
- Self employment income from a sole proprietorship
- Partnership income for which services have been provided
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| Tax Advantages |
Earnings grow tax-deferred until withdrawn. Contributions may be tax-deductible |
Earnings are tax-free if account is open for five tax years and withdrawn for a qualified reason (age 59½, disability, death or a first-time home purchase**). Not required to start withdrawals at age 70½ |
| Interest Taxed |
Yes, interest earned will be taxed upon withdrawal |
No, interest earned is exempt from tax |
| Annual Contribution Limit* |
$5,000 if you are younger than 50 years; $6,000 if you are between the ages of 50 and 70 (not to include the 70 ½ year)
Cannot exceed compensation. |
$5,000 if you are younger than 50 years old; $6,000 if you are 50 or older.
Cannot exceed compensation. |
| Spouse Contribution |
Yes |
Yes |
| Contributions After Age 70½ |
No |
Yes |
| Required Distribution |
Funds distributed must begin when owner reaches the age of 70½ |
No |
| Qualified Withdrawal |
All withdrawals are allowed without an IRS penalty if the owner is over 59½, deceased, or disabled. |
Assets must be on deposit for at least five (5) years and the owner is over 59½ or disabled, deceased, or first-time home buyer. |
| eStatements |
Yes |
Yes |
| Home Banking |
Yes |
Yes |
| Payroll Deduction |
Yes |
Yes |
| NCUA Insured up to $250,000 |
Yes |
Yes |
For additional options and consultative advice on Individual Retirement Accounts, Insurance or other investment strategies, we encourage you to contact our MEMBERS Financial Services representative, Guy Cook at (404) 515-3079. Guy can also help with Retirement Planning, Long Term Care Insurance, Estate Planning, Tax Planning and more!
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For more information on the IRAs offered by SECU, please contact the Member Services Department at (404) 656-3748.
