Key Features
- Competitive Dividends
- No Monthly Service Fee
- Free Digital Banking
- Establish Membership
- Competitive Dividends
- No Monthly Service Fee
- Free Digital Banking
- Establish Membership
Details
- Traditional and Roth IRA options
- Annual contribution limits apply per IRS regulation
- Additional $1,000 “catch-up” contribution allowed for ages 50+
- Funds can be used to purchase CDs within IRA
- $25 minimum deposit to open an account
Traditional Vs. Roth
There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at the time of retirement.
Traditional IRA
- No income limits to open
- No minimum contribution requirement
- Contributions are tax deductible on state and federal income tax*
- Earnings are tax-deferred until withdrawal (when usually in the lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals are subject to penalty*
- Mandatory withdrawals at age 73
Roth IRA
- Income limits to be eligible to open Roth IRA*
- Contributions are NOT tax-deductible
- Earnings are 100% tax-free at withdrawal*
- Principal contributions can be withdrawn without penalty*
- Withdrawals on interest can begin at age 59½
- Early withdrawals on interest are subject to penalty*
- No mandatory distribution age
- No age limit on making contributions as long as you have earned income
* Coastline Federal Credit Union offers Traditional and Roth Individual Retirement Accounts (IRAs) in accordance with current Internal Revenue Service (IRS) regulations. Contributions, distributions, and eligibility for tax advantages are subject to IRS rules and annual limits, which may change from year to year.
It is the responsibility of the account holder to ensure compliance with IRS contribution and distribution requirements, including income eligibility, required minimum distributions (RMDs), and tax reporting. Coastline Federal Credit Union does not provide tax or legal advice. For assistance with retirement planning or to determine which IRA is right for you, please consult a qualified tax advisor or financial professional.
For more information about IRS rules regarding Traditional and Roth IRAs, please visit the official IRS website at www.irs.gov.
