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in the year the contributions are made, and taxes due on the earned dividends are deferred until the funds are withdrawn. Contributions can be made up till April, 15th for the prior year. Contribution eligibility ceases at age 701/2 and withdrawals must begin. Contributions can only be made if you have had "earned" income.
Roth IRAs - contributions are not tax deductible. 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's - 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 and 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.
