How could you spend $5...
Buy a footlong sub, pump a few gallons in your gas tank or, better yet, invest in your future! It only takes $5 to open an Individual Retirement Account (IRA) at Clearview Federal Credit Union. Plus, it’s easy to build your savings because direct deposit or an automatic transfer can be set-up for your contributions. Read below to learn about your IRA options at Clearview or visit the IRA Center for further information about IRA.
Traditional IRA Savings account*
A Traditional IRA Savings account is a special savings plan authorized by the Federal Government to help you save money for retirement. Any Clearview member who has earned income is able to open a Traditional IRA Savings account and may contribute up to a maximum of 100% of annual earned income or $5,000, whichever is less. A working spouse who is a Clearview member may also establish an IRA up to $5,000. If you have attained age 50 by the end of a year, then your limits are increased to $6,000 through the year 2010. |
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Roth IRA Savings account*
A Roth IRA Savings account allows the participant to withdraw the amount of his or her contributions at any time, tax-free, and in most cases penalty-free. After a Roth IRA has been open for five successive tax years, members may take tax-free and penalty-free withdrawals of earnings if they meet any of the following qualifying conditions:
- Upon the owner's death
- The IRA owner reaches age 59 1/2
- The IRA owner becomes permanently or totally disabled
- The IRA owner uses the funds for a first-time home purchase. The person buying the home may be the IRA owner or spouse; or the child, grandchild, parent, or grandparent of the owner or spouse. There is a lifetime cap of $10,000 per IRA owner; or $20,000 for married couples.
In accordance with the rules and regulations of the IRS, any one individual may not contribute more than $5,000 annually to an IRA. If you have attained age 50 by the end of a year, then your limits are increased to $6,000 through the end of that specific year. Contributions to a Roth IRA Savings account are not tax deductible. You can contribute to the account after age 70 1/2 provided you are earning compensation. Under the Roth IRA, you are not required to take withdrawals at age 70 1/2.
- Members can convert their existing IRAs to a Roth IRA
- Dividends are credited and compounded quarterly
*You must maintain a $100 minimum average daily balance to receive dividends.
Education IRA Savings account*
An Education IRA focuses on the need for meeting the costs of higher education. Contributions can be made regardless of participation in any other IRA Programs. Qualified individuals may contribute to the combined maximum contribution of $2,000 per child per year, and continue to do so until the child reaches the age of 18. All contributions to the Education IRA
are non-deductible.
This account allows payroll deductions, periodic deposits or automatic transfers, and has the same terms and conditions as our current IRA Traditional and Roth IRA Savings account.
Earnings may be withdrawn tax-free if used to pay for qualified education expenses before he or she reaches age 30. If the funds have not been distributed or rolled over by age 30, the earnings made at that time will be taxable and subject to a 10% IRS penalty tax to
the beneficiary.
All dividends are credited and compounded quarterly.
*You must maintain a $100 minimum average daily balance to receive dividends.
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