IRAs

An Individual Retirement Account (IRA) can offer additional retirement security for eligible members. Both Traditional and Roth IRAs are available as a savings account or certificate. We are available to help explain your options.

Deposits for any tax year may be made until April 15th of the following year and can be set up through payroll deduction. As with all MEFCU deposit accounts, IRAs are insured up to $425,000. You may qualify for tax advantages from either Roth or Traditional IRAs; see your tax advisor for more information.

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    Taxes


    Traditional IRA

    • Tax-deferred earnings
    • Contributions may be tax deductible

    Roth IRA

    • Tax-free earnings
    • Non-deductible contributions

    Eligibility


    Traditional IRA

    • By Age: Any age1
    • By Income: No income limits1

    Roth IRA

    • By Age: Any age1
    • By Income: Based on income

    Withdrawals


    Traditional IRA

    • Required minimum distributions after age 72.
    • Withdrawals of pre-tax contributions and any earnings are taxable when distributed.
    • 10% federal penalty tax on withdrawals before age 59½ unless an exception applies.2

    Roth IRA

    • No required minimum distributions.
    • Contributions are always withdrawn tax-free. Earnings are federally tax-free if you’ve had your Roth IRA for five years and one of the following conditions is met: Age 59½, death, disability or qualified first-time home purchase.
    • Distributions from contributions are penalty-free. 10% federal penalty tax on withdrawals of earnings before age 59½ unless an exception applies.3

     


    Contribution Limits for both Traditional and Roth IRAs are $6,000 ($7,000 if you're age 50 or older), or your taxable income for the year if your compensation was less than this dollar limit.


    1Must have employment related compensation.

    2For Traditional IRAs, penalty-free withdrawals include but are not limited to: qualified higher education expenses; qualified first home purchase (lifetime limit of $10,000); certain major medical expenses; certain long-term unemployment expenses; disability; or substantially equal periodic payments.

    3A distribution from a Roth IRA is federally tax-free and penalty-free provided that the five-year holding period has been satisfied and one of the following conditions is met: age 59½, suffer a disability, or qualified first time home purchase.

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    1Must have employment related compensation.

    2For Traditional IRAs, penalty-free withdrawals include but are not limited to: qualified higher education expenses; qualified first home purchase (lifetime limit of $10,000); certain major medical expenses; certain long-term unemployment expenses; disability; or substantially equal periodic payments.

    3A distribution from a Roth IRA is federally tax-free and penalty-free provided that the five-year holding period has been satisfied and one of the following conditions is met: age 59½, suffer a disability, or qualified first time home purchase.

Health Savings Accounts

For members enrolled in a high-deductible health care plan, we offer HSA accounts which help save funds for qualified medical expenses using pre-tax dollars. Consult your tax advisor to see if this account is right for you.

Coverdell Education Savings Accounts

To save for a child's education, we offer Coverdell ESAs with both savings and certificate options. Contributions are not tax-deductible, but your withdrawals are tax-free if used for tuition, books, or other qualified education expenses.

 

 

Youth Certificates

Save big and dream big with our Youth Savings Certificate! An annual percentage yield of 4.50% is the perfect way to save for your little one's future. 

Teen Certificates

Picture it and achieve it with our Teen Savings Certificate! With an annual percentage yield of 5.50% you can help your teen build their savings.