Individual Retirement Accounts (IRAs)
Start saving for your retirement now with a MACCU Individual Retirement Account. Whether you are looking for an IRA share account or certificate, we can provide you with an IRA solution.
The IRA Share Account helps you save for retirement with ease. Deposits can be made any time, or you can arrange payroll deduction deposits. As your retirement funds grow, you can lock in a higher rate of return with an IRA Certificate. IRA Certificates are available with a minimum deposit of $500.00 or more. We offer a variety of terms. Our current IRA Certificate rates can be found on our Savings Rates page.
Contributions to the Traditional IRA may be tax-deductible (consult with your tax advisor). Taxes will be applied to the interest earned during the life of the IRA, but only when drawing money out of the account. In other words, you can use “pre-tax” dollars to make contributions to this account.
When a member retires and withdraws this money, they may pay a lower tax on this income than when employed and earning a higher salary. If it becomes necessary to withdraw money from this account before age 59 ½, a penalty may be charged. Periodic payments must begin from the Traditional IRA at the age of 70 ½.
A Roth IRA requires payment of income tax on the contributions made – meaning your contributions are in “after-tax” dollars. Qualifying withdrawals are tax-free. Owners of this type of IRA must hold this account for a period of five years and meet one of the several criteria to make penalty-free, tax-free withdrawals of both contributions and earnings.
Coverdell Education Savings Account
(ESA – previously known as the Educational IRA)
This account can be opened for children under the age of 18 to help pay for college expenses. Contributions are nondeductible, but earnings are tax-free upon withdrawal if used for educational expenses before the child’s 30th birthday.