Individual Retirement Accounts
Save funds for your retirement in a tax-advantaged manner.
The well-being of our members' financial health holds significance, both in the present and the years to come. In order to support our members in establishing savings strategies for their retirement and other forthcoming financial requirements, we provide a selection of three unique plans tailored to cater to your specific needs.
Roth IRA - Pay taxes now
A Roth IRA allows individuals to proactively save for upcoming expenses, free from the worry of potential tax ramifications down the line. Under the Roth IRA structure, taxes are paid on the funds at the outset. The allowable contribution to this account is influenced by one's modified adjusted gross income and IRS guidelines, typically exceeding the limits set for other extended-term savings schemes.
- Roth IRA contributions are not tax-deductible
- Not required to start withdrawals at age 72
- Regular contributions can be withdrawn tax-free and penalty-free at any time
- After the account has been open five tax years, earnings can be withdrawn tax-free and penalty-free for any of these reasons:
- Age 59 1/2, disability, death, or a first-time home purchase**
Interested in opening an account? Visit a branch, call us at 630.276.5555, or send us a product inquiry email below.
GET STARTED
Traditional IRA - Pay taxes later
A traditional IRA serves as a retirement savings account with deferred taxes. Tax payment is postponed until withdrawals are initiated during retirement. This deferral facilitates the unhindered compounding of dividends, interest, and capital gains annually, enabling the IRA to accumulate wealth more rapidly compared to a taxable account. The permissible contribution to this account is contingent upon an individual's modified adjusted gross income and IRS stipulations.
- You may qualify for a saver's tax credit of up to $1,000 when you make a contribution
- Any earnings generated within the IRA are tax-deferred (you do not pay tax on the earnings until you withdraw them)
- If your traditional IRA contributions are tax-deductible and therefore tax-deferred, you do not pay taxes on them until you withdraw the money
- Any after-tax amounts (non-deductible contributions) within your IRA can be withdrawn tax- and penalty-free
Interested in opening an account? Visit a branch, call us at 630.276.5555, or send us a product inquiry email below.
GET STARTED
Coverdell Education Savings Account
A Coverdell Education Savings Account, previously referred to as the Education IRA, is a specialized trust or custodial account designed solely to cover the qualified education costs of the specified beneficiary of the account.
If your adjusted gross income (AGI) after certain modifications is below $110,000 ($220,000 for joint filers), you might have the option to create a Coverdell ESA to fund the eligible educational expenses of a designated beneficiary. For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return.
- The annual contribution limit per beneficiary is $2,000.
- Qualified withdrawals include K-12 expenses in addition to post-secondary education expenses.
- Distributions will be tax-free only for those taxpayers who do not claim an American Opportunity or Lifetime Learning Credit (if eligible) for the same expenses in the same year.
There's no restriction on the quantity of separate Coverdell ESAs that can be initiated for one beneficiary. However, the cumulative contributions for that beneficiary in any given year cannot surpass $2,000, regardless of the number of accounts established.
Interested in opening an account? Visit a branch, call us at 630.276.5555, or send us a product inquiry email below.
GET STARTED
IRAs & ESAs:
Funds are insured up to $500,000. Funds are federally insured up to $250,000 by the National Credit Union Administration (NCUA). An additional $250,000 is insured by Excess Share Insurance (ESI), a subsidiary of American Share Insurance, the nation’s largest private deposit insurer for credit unions.
The information provided here is not intended as tax advice. Consult a tax professional for the most current information and advice.
*APY=Annual Percentage Yield reflects the effective rate earned due to compounding of interest. Compounded monthly; paid monthly. $500 minimum to open an account. The rate listed is shown for the $25,000 tier. Penalties apply for early withdrawal. For accounts with a term to maturity that is less than 4 years, the penalty imposed will equal 180 days dividends calculated on the amount withdrawn. For accounts with a term to maturity that is equal to or greater than 4 years, the penalty imposed will equal 360 days dividends calculated on the amount withdrawn. Penalty may reduce earnings. At the time of maturity, the following will be renewed at the prevailing rate:
• 18-month certificate will automatically renew for a term of 24 months
• All other certificates renew at the same term (i.e. 24 months = 24 months, 36 months = 36 months) Terms and conditions may apply. Rate quoted of 4.89% / APY 5.00% is for the 18-month certificate/IRA and is subject to change, at any time.
