Retirement Accounts

Work Now, Play Later!

Let’s face it, retirement isn’t something most people think about nearly enough, despite the fact it’s what we’re all striving toward; the golden years! With experts predicting Social Security to run out between 2030-2035 and pension plans shrinking left and right, the sad truth is you can no longer rely on these old staples to provide all of the income you’ll likely need to leave the working life behind. You need a solid retirement plan, one that isn’t built on hopefully winning the lottery or a long lost relative leaving their fortunes to you. That’s why an Individual Retirement Account (IRA) is absolutely critical if you wish to one day, yah know, actually retire! So, if you don’t already have an IRA, you really should open one, because the fact is, it’s never too early to start saving!

Choice One Community Credit Union offers two types of IRAs, as well as an education account, so no matter what your savings needs are, we’ve got you covered!

Traditional IRA

As the name suggests, this is the more traditional of the two. With this type of IRA, your contributions may be tax-deductible and you can grow your savings tax-deferred until such time as you retire. When you do retire, the contributions you take are taxed on are based on your current income level.

  • You must be under age 70 ½ to be eligible for a Traditional IRA.
  • Non-working spouses can make fully deductible contributions to an IRA, even if their spouse participates in a retirement program, as long as their joint income does not exceed $150,000.
  • You can contribute up to $5,500 each year or $6,500 if you are age 50 or older.
  • Before age 59 ½, you may be able to withdraw money without a penalty to purchase a first home (up to $10,000 maximum) or pay qualified costs of a higher education.
  • You can’t make contributions after the age of 70 ½.

Roth IRA

The “new” kid on the block, Roth IRA account openings have boomed since its inception. The major advantages of a Roth IRA is that you pay taxes on your yearly contributions, but your account earnings and future withdrawals are tax free. Plus you can continue to make contributions even after age 70 ½, as long as you are still employed.

  • Penalty free withdrawals after 5 years
  • Tax free earnings after age 59 ½
  • Contributions allowed after age 70 ½ when employed
  • No required distribution at age 70 ½ or in your lifetime
  • Tax-free if used for first home purchase (up to $10,000) or education
  • Tax-free if disabled or upon death

Coverdell Educational Saving Account (ESA)

Formally known as the “education IRA”, Coverdell Education Accounts (ESA) are the forgotten brother of the IRA family. They were designed to encourage savings to cover future education expenses (elementary, secondary and/or college), such as tuition, books, uniforms, etc. Contributions can be made to an ESA until December 31st of the tax year. Parents, grandparents, other relatives, friends, and even minors (with earned income) can set up an account for a designated beneficiary, as long as the beneficiary is under the age of 18. Nondeductible contributions can be made of up to $2,000 per beneficiary each tax year. The accumulation of interest and withdrawals are tax-free as long as the funds are used for financing education expenses.

Remember it’s never too early to start saving, so don’t miss this opportunity to make your golden years, no work and all play by opening your IRA(s) today!

For more information or to open your account(s), stop by one of our three conveniently-located branches in Wilkes-Barre, Hazleton or Plains Township.

All credit union deposit accounts, including retirement accounts are insured by the NCUSIF* for up to $250,000.

* The NCUSIF is the National Credit Union Share Insurance Fund. It is a federally insured program governed by the NCUA (National Credit Union Administration).

Money Markets

APR*APY*Info and/or Terms
0.15%0.15%-Minimum Balance of $2,000.00 (up to $19,999.99)
-Each Withdrawal must be at least $500.00
-Maximum of 6 withdrawals per month
-$100.00 required in primary savings account
0.15%0.15%-Minimum Balance of $20,000.00 (up to $49,999.99)
-Each Withdrawal must be at least $500.00
-Maximum of 6 withdrawals per month
-$100.00 required in primary savings account
0.20%0.20%-Minimum Balance of $50,000.00 (up to $99,999.99)
-Each Withdrawal must be at least $500.00
-Maximum of 6 withdrawals per month
-$100.00 required in primary savings account
0.25%0.25%-Minimum Balance of $100,000.00 (and up)
-Each Withdrawal must be at least $500.00
-Maximum of 6 withdrawals per month
-$100.00 required in primary savings account

 

 

 

 

 

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