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IRAs

Family Security offers three types of Individual Retirement Accounts (IRAs) for your consideration. Both Traditional and Roth IRAs are available in the form of IRA Shares and IRA CDs at Family Security Credit Union.

Traditional IRA

  • Tax deferred until withdrawn
  • Regular contributions may be tax deductible
  • No regular contributions can be made after taxpayer reaches age 70½
  • Contributions are subject to IRS annual contribution limits
  • Rollovers are accepted from Traditional IRAs, Simple IRAs, SEP-IRAs, qualified plans, 403(b) plans and governmental 457 plans
  • Most traditional IRA distributions are subject to income taxes.
  • Distributions may be taken at any time and will be treated as ordinary income
    • Non-qualified distributions may be subject to the 10% early withdrawal penalty

Roth IRA

  • Earnings tax deferred until withdrawn
  • Earnings may be withdrawn tax-free if the owner has a qualified distribution:
    • The IRA owner is 59 ½ or older, is disabled, is deceased, or the distribution qualifies as a first time home purchase, AND
    • The IRA owner has had a Roth IRA for 5 years
  • Contributions are subject to IRS annual contribution limits
  • No age limit for regular contributions
  • Can accept rollovers from Roth IRAs and Roth 401(k) accounts. A traditional IRA and a qualified plan can be converted to a Roth IRA.
  • Distributions may be taken at any time and are tax and penalty free if a qualified withdrawal
    • Non-qualified distributions may be subject to the 10% early withdrawal penalty
  • Not required to take minimum distributions

 

View our current rates.