For those members who are looking ahead to retirement, Members Trust Federal Credit Union offers Individual Retirement Accounts ( IRA). Contributions to these retirement accounts can be tax deductible* and can be made in a lump sum or payroll deducted. Save today for your financial needs at retirement.
Traditional IRAs - certain contributions to this type of IRA are tax deductible* in the year the contributions are made and taxes due on the earned dividends are deferred until the funds are withdrawn.
Roth IRAs - contributions are not tax deductible. On the other hand, while
Traditional IRA dividends are tax deferred, Roth IRA withdrawals are penalty free for health/disability, first time home purchase (up to $10,000) and higher educational expenses, provided that the account has been in existence for at least 5 years. Unlike the Traditional IRA, contributions can be made after age 70 1/2.
Education IRA - allows a family to put away up to $500 per year per child (until age 18) for higher education expenses. Anyone can make a contribution - parents, grandparents, relatives, friends - up to a total of $500 per year. These contributions are not tax deductible, but dividends are tax free.
A variety of fixed term, fixed rate certificates of deposit are offered by Members Trust. Terms range from 12 months to 60 months with a minimum deposit requirement of $500.00. Dividend rates are competitive with the financial market place. Early withdrawal penalites may apply.
Members Trust also offers an IRA Savings Account that has a minimum balance requirement of $5.00. Deposits can be made through the convenience of payroll deductions and are reported for the tax year in which they are received.
*Consult your tax advisor regarding the ability to tax deduct these contributions.
