Individual Retirement Account (IRA)

Wouldn't it be nice to retire early with money to spare? Or to be prepared for college expenses? That's a real possibility with regular contributions to your traditional, Roth, or Coverdell Individual Retirement Account at TwinStar Credit Union.

Need help deciding on an IRA? Talk to a TwinStar Financial Advisor to figure out what IRA is right for you.

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Traditional IRA

An Individual Retirement Account (IRA) gives you great rates and tax-deferred earnings, as long as you don't withdraw your savings until you retire (as early as age 59-1/2).

You can open an IRA account with as little as $25. TwinStar Credit Union also offers spousal IRAs. Your IRA account at TwinStar Credit Union is insured by the National Credit Union Administration to the same limits as all TwinStar deposit accounts. IRA accounts in excess of $250,000 are additionally insured for $250,000 by Excess Share Insurance.

Money held in IRAs cannot be withdrawn before retirement age without an IRS penalty. Check with your personal tax advisor to see if your IRA contributions are tax deductible.

Roth IRA

The Roth IRA is less restrictive than traditional IRAs. Earnings on your contributions accumulate tax-free. However, unlike traditional IRAs, contributions are not deductible for federal income tax purposes. The IRS has established maximum annual limits on deposits to Roth IRAs. See the IRS website for details.

Earnings may be withdrawn tax-free and without penalty from an account five years or older if the account holder is: 59-1/2 years of age or older, or; disabled after opening the account, or; uses the proceeds to buy a first home.

Contributions may be withdrawn at any time, for any reason, tax free. There is no 10% penalty for early withdrawal (subject to certain conditions) on traditional IRAs rolled into a Roth IRA; however, the distribution will be considered income for federal tax purposes. Check with your financial advisor for restrictions on incomes, withdrawals and age.

Coverdell Education Savings Account - "Educational IRA"

With a Coverdell Education Savings Account funds may be withdrawn tax-free only for education related expenses of the beneficiary. Contributions are not tax deductible. However, earnings do accumulate tax free until withdrawn. See the IRS website or check with your financial advisor for restrictions on maximum contributions, incomes, withdrawals and age.