Individual Retirement Accounts (IRAs)
Open a Regular IRA account and start down the road to retirement. Or, switch over to a Jumbo IRA and blow past steady-savers in the fast lane.
Pelican State Credit Union gives you several attractive IRA options. So when retirement rolls around, fishing on the river vs. relaxing at home won't seem quite so daunting a decision.
- Potential tax advantages and tax-free earnings
- High-dividend Regular IRA — Opening deposit of $1,000 - $9,999.99
- Even higher-dividend Jumbo IRA — Opening deposit of $10,000+
- NCUA insured up to $250,000
- Rate and term specials available
- Dividends will be capitalized
- Contributions may be made through payroll deduction or deposit
- Distributions for RMD (70.5 years old) may be distributed by check, withdrawal, or automatic transfer to another Pelican State CU account
- Dividends posted monthly
- Dividend rate is fixed for duration of IRA Certificate
- Traditional vs. Roth IRA
Pelican State CU offers both traditional and Roth IRAs. What's the difference?
A Traditional IRA is tax-deferred, meaning whatever you contribute is deductible from your annual income tax. With a Roth IRA, you still pay your annual income tax in full. But, funds can be withdrawn tax-free once you reach an predetermined retirement age†. Consult a tax advisor to see which account could help you save!
- No income limits to open
- No minimum contribution in any year allowing flexibility
- Contributions are tax deductible on state and federal income tax*
- Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
- Withdrawals can begin at age 59½
- Early withdrawals subject to penalty**
- Mandatory withdrawals at age 70½
- Members under age 50 may contribute $5500 maximum per year
- Members over age of 50 may contribute $6500 maximum per year
- No minimum amount to set up
- Adjusted gross income must be less than $131,000 to contribute ($193,000 for joint filers)***
- 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- Principal contributions can be withdrawn without penalty*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 subject to penalty**
- No mandatory distribution age
- No 70½ age limit on making contributions as long as you have earned income
Penalty of dividends for a partial withdrawal or closure without a qualified reason.
†The information provided regarding IRAs is for informational purposes only and should not be considered tax advice. Pelican State Credit Union is not liable for decisions made by the member based on the information displayed on this page. Because every Member's tax situation varies upon multiple factors, please consult your tax adviser regarding your own eligibility and the amount you may contribute to an IRA.
*Subject to some minimal conditions.
**Certain exceptions apply, such as healthcare, purchasing first home, etc.
***As of 2015; IRS may change figure annually.