Individual Retirement Accounts (IRAs)

CSE gives you the ability to save for the future by providing three types of IRA accounts:

• Traditional- An account that allows you to defer taxes on your earnings until they are withdrawn.  Certain contributions are tax-deductible in the tax year for which they are made.  Some age, withdrawal, and contribution limitations apply.
• Roth- Contributions are nondeductible and feature tax-free withdrawals for certain distribution reasons after 5 year holding period.  Contributions are made on an after-tax basis.  People who expect to be in a higher tax bracket when they retire may benefit more from this account.  Some contribution and withdrawal limitations apply.
• Education- Also known as the Coverdell Education Savings IRA, are also nondeductible.  This account features tax-free withdrawals for a very specific purpose only: a child's higher education expenses.  Qualified higher education distributions are penalty and tax-free (Traditional/Roth offer penalty-free only).  Some contribution and withdrawal limitations apply.

• Certificate IRA- Acts just like a normal Certificate, but set up as an IRA for tax purposes.  Account is available in a variable of terms and earns Certificate dividend rates instead of the regular IRA savings dividend rate.  Contribution and withdrawal limitations apply (no fixed regular contributions allowed, penalty for early withdrawal). 

  JUMBO IRA Certificates now available!

Contact one of your IRA Specialists to find out the different features of these accounts or drop by the credit union and ask for a brochure.  See Deposit Rates.

As always, consult your tax advisor regarding the deductability of interest.