Individual Retirement Accounts
Save money for retirement in a tax-advantaged way
The financial fitness of our members is important, both now and in the future. To assist members with savings plans for retirement or other future expenses, we offer three distinct plans to meet your individual needs.
Roth IRA - Pay taxes now
A Roth IRA enables members to save now for future expenses without concern for future tax implications. With a Roth IRA the account holder pays tax on funds up front. The amount one may contribute to this account varies according to one’s modified adjusted gross income and IRS regulations, but the amount is typically greater than permitted with other long-term savings plans.
- 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- Regular contributions can be withdrawn tax-free and penalty-free at any time
- After the account has been open five tax years, earnings can be withdrawn tax-free and penalty-free for any of these reasons: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 is a tax-deferred retirement savings account. You pay taxes on your money only when you make withdrawals in retirement. Deferring taxes means all of your dividends, interest payments and capital gains can compound each year without being hindered by taxes - allowing an IRA to grow much faster than a taxable account. The amount one may contribute to this account varies according to one’s modified adjusted gross income and IRS regulations.
- 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- Any after-tax amounts (non-deductible contributions) within your IRA can be withdrawn tax- and penalty-free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 (formerly known as the Education IRA) is a trust or custodial account created exclusively for the purpose of paying the qualified education expenses of the designated beneficiary of the account.
If your modified adjusted gross income (MAGI) is less than $110,000 ($220,000 if filing a joint return), you may be able to establish a Coverdell ESA to finance the qualified education 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 is no limit on the number of separate Coverdell ESAs that can be established for a designated beneficiary. However, total contributions for the beneficiary in any year cannot be more than $2,000, no matter how many accounts have been 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
Your savings 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. Rates subject to change without notice. Annual Percentage Yield (APY) reflects the effective rate earned due to the compounding on interest. Interest for IRAs is compounded monthly; paid monthly. Penalties apply for early withdrawal. Penalty may reduce earnings. $500 minimum to open an IRA.
*APY=Annual Percentage Yield reflects the effective rate earned due to compounding of interest. Quoted APY examples are for a 5 year term. Compounded monthly; paid monthly. $500 minimum to open an account. Rates will apply to new accounts, matured roll overs and bump CDs. Penalties apply for early withdrawal. Penalty may reduce earnings. Rates subject to change without notice. Terms and conditions may apply. Please contact a Member Service Representative for details. Limited time only.
