Traditional IRA

Individual retirement accounts are a smart way to save for the future. A traditional IRA can be open and funded without any employer participation. Contributions and/or earnings are tax deferred until retirement. Unlike many employer plans, the money in your IRA account is always accessible. However, there is a 10% early distribution penalty by the IRS (before age 59½) unless you qualify for an exemption due to one of the following: disability, qualifying education expenses, unemployment, qualifying first-time home purchases, death or receipt of your IRA assets in equal payments over your life expectancy.

Metro Medical Credit Union offers a share savings IRA account that earns quarterly interest. The minimum deposit for an IRA savings account is $25. IRA Certificates (CDs) are also available for terms ranging from one year to five years. Minimum opening deposits for IRA CDs are $1,000.00. IRA accounts are insured up to $250,000.00 separately from any other deposits you may have at the credit union.

Roth IRA

Roth IRAs differ from traditional IRAs in that the money you contribute to a Roth IRA has already been taxed. Earnings are tax-free if account is open for five years and withdrawn for a qualified reason (age 59½, disability, death or a first-time home purchase.) This retirement plan allows the money you contribute to grow tax-deferred.

How much can you contribute?

Traditional IRA

• $5,000 for 2010
• For owners age 50 and older, your limits increase to $6,000 for 2010
• Contributions cannot exceed the wages you earn

For more information on a traditional IRA, please contact the credit union. To view current rates, click here or click here for retirement calculator.

Roth IRA

• $5,000 for 2010
• For owners age 50 and older, your limits increase to $6,000 for 2010
• Contributions cannot exceed the wages you earn

Please check with your tax preparation expert for specific details on IRAs. Click here for current rates or click here for the retirement calculator.