IRAs


Saving For Retirement Has Never Been Easier!

An Individual Retirement Account (IRA) is a special savings plan which helps you save for your retirement. Over time, the money in your IRA will grow tax-deferred. And in the case of a Roth IRA, your withdrawals (including earnings) will be tax-free if the account has been open for five years and one of the following reasons applies:

  • age 59 1/2
  • disability
  • first home purchase ($10,000 lifetime limit)
  • death

IRS regulations require that you have earned income or that you file your tax return jointly with someone who has earned income in order to make contributions (deposits) to an IRA. There is no minimum age requirement.

Interest is paid and compounded quarterly on all IRA accounts. Please see our rate sheet for current rates, or call us at 734-662-8200 or 800-968-8628 for an IRA application packet. Or, inquire at any of our offices.

We offer the following investments:
Traditional and Roth IRAs (either $500 or $10,000 minimum to open)

  •   6-Month IRA 
  • 12-Month IRA 
  • 18-Month IRA 
  • 24-Month IRA
  • 30-Month IRA
  • 36-Month IRA  
  • 42-Month IRA 
  • 48-Month IRA
  • 54-Month IRA 
  • 60-Month IRA
Loss of 90 days interest if funds are withdrawn before maturity.
 

IRA Plus Account

  • When you open IRA Plus, choose either a Roth or a Traditional IRA.
  • No minimum balance is required to open the account.
  • No minimum balance is required to maintain the account.
  • Features the structure of a savings account with IRA tax advantages.
  • The interest rate is the same as the Savings Plus account (see Rates). Interest is paid quarterly.
  • There are no 90 day or 180 day UMCU interest penalties for early withdrawals. But, Internal Revenue Service (IRS) penalties may still apply for early withdrawal.
  • No need to renew this account. It stays open until you close it.
  • Contributions are limited to $4,000 for 2006-2007 and $5,000 for 2008 for taxpayers under age 50. For those 50 and older by the end of a year, your limit is $5,000 for 2006-2007 and $6,000 for 2008.
  • Contributions to the IRA are allowed at any time.
  • IRAs are also available as term savings accounts with opening minimum balances of either $500, $10,000 and higher rates for $50,000 and $100,000.

Open your IRA Plus account at any office and invest in your future, today.

Choosing the IRA that's Right for You

Curious about the major differences between a Traditional and a Roth IRA? The chart below will explain. For more information about  IRAs, see your credit union IRA specialist. Be sure to seek the advice of a competent tax professional if you need more specific tax information.

Traditional IRA Roth IRA
Income limits for contributions No income limits.

 

 

 MAGI (modified adjusted gross income as reported on your tax return) must be under $110,000 for single filers, under $160,000 for joint filers, and under $100,000 for married persons filing separately.
Contribution limits
 		 Total combined contributions to a Roth and/or Traditional IRA are limited to  $4,000 for 2006-2007 and $5,000 for 2008 for taxpayers under age 50. For those 50 and older by the end of a year, your limit is $5,000 for 2006-2007 and $6,000 for 2008. Total combined contributions to a Roth and/or Traditional IRA are limited to $4,000 for 2006-2007 and $5,000 for 2008 for taxpayers under age 50. For those 50 and older by the end of a year, your limit is $5,000 for 2006-2007 and $6,000 for 2008.
Tax Credits for IRA Contributions 

You may be able to receive a tax credit for making contributions for the 2007 & 2008 tax years. The full credit is 50 percent of the first $2,000 of contributions. For 2007, the full credit is available for joint filers who have joint MAGI (modified adjusted gross income) up to $31,000 ($32,000 in 2008), heads of households with MAGI up to $23,250 ($24,000 in 2008) or other filers with MAGI up to $15,500 ($16,000 in 2008). Smaller tax credits are available for joint filers with MAGI up to $52,000 ($53,000 in 2008), heads of households with MAGI up to $39,000 ($39,750 in 2008), or other filers with MAGI up to $26,000 ($26,500 in 2008).

 

 

 

 

 

 

 You may be able to receive a tax credit for making contributions for the 2007 & 2008 tax years. The full credit is 50 percent of the first $2,000 of contributions. For 2007, the full credit is available for joint filers who have joint MAGI (modified adjusted gross income) up to $31,000 ($32,000 in 2008), heads of households with MAGI up to $23,250 ($24,000 in 2008), or other filers with MAGI up to $15,500 ($16,000 in 2008). Smaller tax credits are available for joint filers with MAGI up to $52,000 ($53,000 in 2008), heads of households with MAGI up to $39,000 ($39,750 in 2008), or other filers with MAGI up to $26,000 ($26,500 in 2008).

 

 
Age limit on contributions The year you reach age 70 1/2. No age limit.
Age for required distributions The year you reach age 70 1/2. No mandatory withdrawals.
Withdrawal penalties There is a 10% penalty on withdrawals prior to age 59 1/2 except for withdrawals due to:
  • Death
  • Disability
  • Pre-59 1/2 periodic payments
  • Qualifying medical expenses
  • Health insurance premiums while unemployed
  • Withdrawals up to $10,000 toward the purchase of a first home
  • Conversion to a Roth IRA
  • Higher education expenses (for owner, spouse, children or grandchildren)


 

 

 

 

 

The portion of a withdrawal that is the return of non-deductible contributions is not subject to tax or penalty.

 There is a 10% penalty on withdrawals prior to age 59 1/2 except for withdrawals due to:
  • Death 
  • Disability
  • Pre-59 1/2 periodic payments
  • Qualifying medical expenses
  • Health insurance premiums while unemployed
  • Withdrawals up to $10,000 toward the purchase of a first home
  • Higher education expenses (for owner, spouse, children or grandchildren)

 

 

 


Withdrawals of regular contributions are not subject to tax or penalty.
Conversion options A traditional IRA can be converted to a Roth IRA if your MAGI for the year (filing singly or jointly) is $100,000 or less.
The amount converted is included in taxable income for the year.		 A Roth IRA cannot be converted into any other kind of IRA.
Tax Advantages Contributions may be fully or partially tax deductible if:
  • Neither you nor your spouse participates in an employer retirement plan.
  • You do not participate in an employer retirement plan but your spouse does, and your MAGI (modified adjusted gross income) is below $160,000.
  • You participate in an employer retirement plan and your MAGI is at or below $41,000 (for tax year 1999) for single filers or $61,000 for joint filers.

Taxes on the earnings are deferred until the funds are withdrawn from the IRA.

 Contributions are not tax deductible.

Earnings are tax free if you have had an account for five years and one of the following applies:

  • After age 59 1/2
  • Death
  • Disability
  • First-time home purchase (up to $10,000)
 
NCUAYour savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government
National Credit Union Administration, a U.S. Government Agency
Equal Housing Lender We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.