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IRAs & Certificates of Deposit

Individual Retirement Accounts are intended to help people save for their retirement. Several types of Individual Retirement Accounts (IRA’s) are available-Traditional IRA; IRA Savings; Roth IRA; SEP IRA; Education IRA. IRA's may also be obtained as a certificate. (Periodic payments may only be made from an IRA Savings Account).
 

Who can contribute?

Anyone who has income from compensation (or who is filing jointly with a spouse who earns compensation,) and meets the adjusted gross income qualifications may contribute. To download a detailed brochure, Click Here or on the "Exploring Your IRA Options" icon to the right. To download a convenient "IRA Eligibility" chart, Click Here or on the icon to the right.
 

Telco options to meet your needs

Traditional IRA

  • Anyone under age 70½ who has income from compensation (or who is filing jointly with a spouse who earns compensation)  
  • Earnings grow tax deferred until withdrawn
  • Contributions may be tax-deductible

Roth IRA

  • Funds deposited are not tax-deductible
  • Regular contributions can be withdrawn tax and penalty-free at any time
  • After the account has been opened 5 tax years, earnings can be withdrawn tax and penalty-free for any of the following reasons:
    • Age 59 ½
    • Disability or death
    • First time home purchase (up to $10,000 maximum withdrawal)

Coverdell Education Savings Account

  • Yearly $2,000 contribution per child
  • Funds deposited are not tax-deductible
  • Withdrawals are tax and penalty-free only for qualified education expenses (earnings are subject to tax and penalty for most other withdrawals)
  • Funds can be transferred from one child’s account to an account for another child in the family.

Simplified Employee Pension (SEP)

  • A pension plan established by a small business or self-employed individual.
  • The plan allows employers to make contributions toward their own and their employees’ retirement.
  • A SEP IRA is a traditional style IRA that is owned and controlled by each employee.

 
Rollover Contributions

Direct Rollover

  • A rollover IRA can be established when an account holder withdraws all or part of the funds in one IRA and reinvests them in another IRA of the same type.
  • Pension and other retirement distributions may be reinvested in a traditional IRA or Roth (for Roth conversions the full amount is taxed).
  • Lump sum distributions may occur upon retirement or the termination of a job.
  • Same funds may be rolled only once in a 12-month period.
  • If you roll over a qualified pension (such as 401(a), 401(k) and 403 (b), the plan sponsor may withhold 10% federal income tax and 4% N.C. state tax if the distribution check is payable directly to you. To avoid the early payment of taxes, you can have the funds payable to the credit union.

IRA Share Account functions as a retirement savings account that can accept regular contributions without waiting for a maturity date. This account can be used to build the total funds needed to reach your yearly deposit goals. Make it even easier to reach the goal through payroll direct deposit or monthly transfers. This account is available for all our IRA options.

IRA Certificates when you want a higher, guaranteed rate of return for a fixed term.

  • Highly competitive Annual Percentage Yield
  • Flexible terms with maturities starting at just 6 months
  • Minimum deposit of $500
  • Dividends are compounded monthly and paid monthly

Click Here for Current Rates.