Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency. Savings
A regular Share Account is required for membership in the Credit Union with a $25.00 minimum deposit. With this account you earn dividends on money deposited into the account. Dividends are calculated on this account on the actual daily balance and are posted on the first day following the end of the quarter.
Dividends can change quarterly and are declared by the Board of Directors before the quarter end. A quarterly statement is mailed at the end of each quarter.
To open a Christmas Club Account, all you need is $5.00! You can deposit ANY amount at ANY time throughout the year. The only way to make it even easier is to have your deposits deducted from your payroll. It’s simple and you’ll be glad you opened one come October when you receive that Christmas Club check in the mail!
Dividends are earned daily and credited and compounded quarterly.
Individual Retirement Accounts (IRA)
Traditional IRA The Traditional IRA offers an opportunity to save for retirement while deferring taxes on the earnings. For qualified individuals, this deductible IRA allows you to deduct all or a portion of your contribution from your taxable income in the year for which the contribution is made. Taxes on this money and on the earnings are deferred until the money is withdrawn from the IRA.
Penalty-free distributions are allowed when:
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IRA owner is age 59½ or older |
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Money is used for qualified post-secondary education expenses |
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Money is used for first-time home purchase – up to $10,000 |
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Money is used for qualified medical expenses |
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IRA owner becomes disabled |
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IRA owner dies |
Non-qualified distributions are subject to a 10% early-withdrawal penalty.
Funds withdrawn for a first-time home purchase or education expenses are still taxable.
Roth IRA
The Roth IRA is a product of the Taxpayer Relief Act of 1997. It offers you the opportunity to build a tax-free retirement fund. Following are some of the key points of the Roth IRA.
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Available for tax-year 1998 and beyond |
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Contributions made with after-tax money |
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Earnings accumulate TAX FREE |
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Minimum distributions not required |
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No age limit on contributions |
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Earned income is a requirement for making contributions |
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Qualified distributions NOT TAXED |
To be a qualified distribution:
Roth IRA must be open a minimum of 5 years AND one of the following conditions must be met:
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Age 59½ |
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Disabled |
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Money used for first-time home purchase – limit $10,000 |
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Deceased |
Income limitations are higher than on the Traditional IRA:
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Married couples must file a joint tax return to be eligible to make a contribution to a Roth IRA. |
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Contributions may be made to a Roth IRA even if you are covered by a Qualified Retirement Plan at work. |
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Traditional IRAs can be rolled over, transferred, or converted to a Roth Conversion IRA. Certain restrictions may apply. |
Roth Conversion IRA
The Roth Conversion IRA is an IRA established to accept rollovers, transfers, or conversions from a Traditional IRA.
The Roth Conversion IRA is established for the year in which the funds leave the Traditional IRA.
Your Adjusted Gross Income must not exceed $100,000 (whether single or married filing jointly) for the year in which you make the conversion from a Traditional IRA to a Roth Conversion IRA.
Funds leaving a deductible IRA will be subject to income tax. Any rollovers, transfers, or conversions occurring in 1999 or beyond will be subject to full taxation in the year in which the rollover, transfer, or conversion was made.
We suggest you consult a financial planner or a tax advisor to determine whether or not it is financially beneficial &/or feasible for you to move your retirement money from a Traditional IRA to a Roth IRA. There may be restrictions, based on the original source of funds, on Traditional IRAs that can be moved to a Roth IRA.
IRA Term Share Certificates
IRA Term Share Certificates are also available. The following terms with minimum deposit requirements are:
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12 Months — minimum deposit of $1,200.00 |
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24 Months — minimum deposit of $2,000.00 |
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36 Months — minimum deposit of $2,000.00 |
The amount of penalty for early withdrawal for the IRA term share certificate is 90 days dividends (this is in addition to any penalties imposed by the IRS).