IRA savings Account

Looking for Retirement Planning Solutions? As Northeast Ohio’s Trusted Credit Union, We Can Explain How IRAs Work – and How They Can Work for You!

If you’re confused by the choices available for retirement planning, you’re not alone. Retirement planning accounts can be employer-supported, such as a 401(k), or available to individual investors like Individual Retirement Accounts (IRAs). IRAs provide an opportunity to invest in your retirement with tax benefits, and depending on the type of IRA you choose (Traditional or Roth), you can enjoy tax advantages in different ways. At FFCCU, we can guide you through your options and help you find the best IRA account to suit your needs. With just $50, you can open a Traditional or Roth IRA with us, and enjoy the benefits of no maintenance fees**, monthly dividends, and the flexibility to make contributions in lump sums or through regular deposits throughout the year. Investing in an IRA is a tax-advantaged way to grow your retirement funds, and we can help make it simple and easy for you.

Traditional IRAs vs Roth IRAs:
What is the best IRA account for you

If you’re looking to save money for retirement, you may already be familiar with employer-sponsored 401(k) plans or other retirement plans, which are designed to help you either defer taxes or pay lower taxes later in life. These types of accounts encourage people to start saving for their Golden Years in ways that create the most financial benefit. So, how should IRAs fit into your overall retirement-saving plan? In most cases, both Traditional IRAs and Roth IRAs offer great tax-savings benefits. However, the amount you’re allowed to contribute is relatively low compared to other retirement savings plans. When investing in an IRA, consider these rules, limits and requirements – before deciding which type of investment is best for you.

Traditional IRA

With a traditional IRA, there are no maximum income limits to open the account, only a $50 minimum balance, and no minimum contribution requirements. Contributions can be tax deductible and taxes are not imposed on earnings until they are withdrawn.

You can begin making withdrawals at age 59 ½, and withdrawals are mandatory beginning at age 73. On the flip side, traditional IRAs are also subject to an early withdrawal penalty.

Roth IRA

A Roth IRA features tax-free withdrawals for certain distribution reasons after a 5-year holding period. Since Roth IRA contributions are non-deductible and taxed in the year they are earned, members who expect to be in a higher tax bracket when they retire may benefit more from a Roth IRA than from a Traditional IRA.

Unlike the traditional IRA, there is no requirement to begin taking distributions at age 72. However, there are income limitations for eligibility for a Roth IRA.

Traditional IRA

Roth IRA

The Basics
With Traditional IRAs, you defer paying taxes on your earnings until you start taking distributions. Certain contributions are also tax-deductible in the year they are made. Please consult with your tax advisor for details. With a Roth IRA, you can make non-deductible contributions that are taxed within the year they are earned rather than when they are withdrawn. Roth IRAs allow you to take tax-free distributions including earnings once you’ve reached age 59 ½ and had the account for at least five years. Other distribution exceptions may apply. Please consult with your tax advisor for full details.
Income requirements (2024 rules)
Must have earned income to be eligible (or your spouse if filing jointly). Your modified adjusted gross income (MAGI) must be within certain limits.
Contribution limits (2024 rules)
You can now contribute at any age. $8,000 if you are 50 or older $7,000 for all others Total combined contribution cannot exceed the maximum contribution** (plus the catch-up amount if you are age 50 or older) You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts. Total combined contribution cannot exceed the maximum contribution** (plus the catch-up amount if you are age 50 or older)
Withdrawal rules (as of 2024)
Withdraw funds any time after age 59 ½ without incurring the 10 percent premature-IRS distribution tax. Required minimum distribution (RMD) rules apply, depending on when you were born. Qualified contributions may be withdrawn without IRS penalty. You can withdraw earnings after you reach age 59½.
Tax considerations
Your contributions to an IRA will reduce your current taxable income. Once you withdraw money, the money will be taxed based on your current tax rate. Contributions are made with after-tax dollars, so they cannot be deducted on your tax returns.
Why to consider it
If you know that you’ll stop earning regular income by age 73, your tax rate will be much lower. If you want to diversify your retirement savings accounts. If you’re not concerned about reducing your current taxable income. If your current tax rate isn’t very high, and you don’t expect it to be lower in retirement. To lower your tax liability taxes (on at least some of your money) during retirement.
The Bottom Line: Why we recommend it
Reduces your current taxable income today. When you do pay taxes on the money, you’ll likely be retired and earning less than you do now. This assumes your tax rate lower. Competitive rates. By saving the money in a Roth IRA, you benefit from tax-free earnings and withdrawals after you retire. Competitive rates.
**COLAs are potential cost-of-living adjustments each year. For more information, visit the IRS website at www.irs.gov. (add link to irs.gov/IRA Contribution Limits)

KUDOS!

Competitive IRA Rates

Looking for the best IRA rates? Maximize your IRA earnings with FFCCU’s competitive rates. There are no monthly fees** and dividends are paid monthly.
As of January, 2024
Account TypeMinimum Balance APY*
Traditional IRA$50+0.30%
Roth IRA$50+0.30%

*APY = Annual Percentage Yield. This rate schedule states rates applicable to specified accounts. Dividends are credited to your account and compounded every month.  Minimum balance requirements apply to average daily balance. Call 800.621.4644 for current rates as they are subject to change at any time and without notice. Click here to view full rate disclosures and policies. **IRA Transfer/Rollover out or Close IRA (within six months) fee is $25.00.

Take Advantage of These Credit Union IRA Benefits

When you open an IRA with FFCCU, we help you maximize the benefits of this savings vehicle. Ask us more about these advantages!

Tax savings

Whether you choose to open a Traditional or Roth IRA, there are tax benefits. We can take you through all the options to help you decide which is best for your needs and growth.

No setup or maintenance fees!*

Because we’re a credit union – and not a brokerage firm — we don’t charge you to open an IRA savings account, and there are never any hidden maintenance or service fees.

*Fees apply for Transfer/Rollover out and for Closing (within six months). Contact the credit union for current fee information.

Savings choices

Traditional and Roth IRA certificates are also available with a minimum deposit of $500 in terms of 6, 12, 18, 24, 36, 48, and 60 months.

Great IRA rates

As a credit union, we always look for ways to help our members maximize their investments. That’s why we always aim towards a good and stable rate of return for our customers.

Open an IRA Savings Account with Us Today

Opening a Traditional or Roth IRA with FFCCU is easy. There’s nothing to manage, deposits can be set up to automatically transfer into your account, and you can view your account details easily through FFCCU’s convenient online banking portal. Plus, there’s no application fee, approval process or maintenance fees**.

To open an IRA Savings Account with us today, please keep in mind the following steps:

IN-PERSON VISIT:

The process must be done in person since certain documentation is required.

KNOW YOUR IRA TYPE:

You’ll need to be clear about whether you want a Traditional or Roth IRA. Unfortunately, we cannot offer recommendations or guidance on this matter.

MINIMUM BALANCES:

To get started, you’ll need a minimum balance of $50 for a savings account or $500 if you’re interested in a certificate.

We’re here to make the process as straightforward as possible for you, so feel free to visit us in person with the necessary documents and knowledge of your IRA preference.

Investments Backed by ASI

FFCCU is proud to be an American Share Insurance (ASI) credit union. Founded in 1974, ASI is the nation’s largest provider of private share insurance. Currently, over 1.2 million members belong to credit unions insured by ASI, creating strength in numbers. This means your IRA savings account is fully insured up to $250,000 per depositor and backed by ASI protection. It’s a level of protection and safety you often won’t find with a traditional bank.

SERVING OHIO SINCE 1936

We know Ohio because we live and work here too. We’ve been helping our customers with their community credit union needs since 1936. Wherever you live in Northeast Ohio, we can help:

  • Cuyahoga
  • Geauga
  • Lake
  • Lorain
  • Medina
  • Portage
  • Summit

BRANCH/ATM FINDER  

FAQs

The amount typically changes annually. Please consult with your tax advisor for details.

It depends on your earnings and the current IRA rules, which typically change annually. Please consult with your tax advisor for details.

If you are a self-employed individual, contributing to an IRA can be a smart savings option for your retirement. It’s essential to consider how much you should put into your IRA per month to reach your savings goals. Maximizing your contribution, as suggested, is an excellent starting point for many people. However, as a self-employed individual, you should also evaluate your cash flow and budget to determine if you can afford to contribute more. Remember that the contribution limits for IRAs are the same for all taxpayers, including self-employed individuals. So, whether you are employed or self-employed, it’s crucial to maximize your IRA contributions to ensure a comfortable retirement.

A 401(k) is an employer-sponsored retirement plan, whereas an IRA is an individual retirement account that you manage on your own or with the assistance of an investment advisor. With a 401(k), your employer contributes to your retirement savings plan and often matches a percentage of your contributions, making it a valuable benefit of many employer-sponsored retirement plans. On the other hand, an IRA is entirely self-funded and is typically not tied to an employer.
You cannot put in more money than you earn. In other words, if you only make $3,000 a year, you can only put $3,000 into your IRA account.
IRAs offer a dedicated savings vehicle for retirement and offer tax benefits along the way.
Anyone can contribute to a Traditional IRA, as long as you have earned income and you’re under age 73. To contribute to a Roth IRA, your adjusted gross household income must be $153,000 or less (if you’re single) or $228,000 or less (if you’re married, filing jointly). These figures are for 2023. Often IRA rules change annually. Please consult with your tax advisor for details.
Certainly, you can transfer funds from an existing IRA account to FFCCU’s IRA account. However, this process typically requires documentation from both the sending and receiving institutions. This transfer can be either a straightforward transfer or a rollover.
If you’re contributing to a Traditional IRA, Federal rules state that you must start taking distributions from the account after you turn 73. For a Roth IRA, you can begin to withdraw contributions without the withdrawal penalty, as long as you meet certain distribution criteria, and the money has been in the account for at least five years. You can only withdraw earnings after you reach age 59½.
FFCCU partners with Cetera Advisors Network for comprehensive financial planning. Our trusted partners at Cetera can provide advice on retirement planning, estate planning, tax-deferred annuities, and much more. Learn more about Cetera’s capabilities here and schedule a meeting today!

*APY = Annual Percentage Yield. This rate schedule states rates applicable to specified accounts. Dividends are credited to your account and compounded every month. Minimum balance requirements apply to average daily balance. Call 800.621.4644 for current rates as they are subject to change at any time and without notice. Click here to view full rate disclosures and policies.

**IRA Transfer/Rollover out or Close IRA (within six months) fee is $25.00.