Jessop Community FCU offers Traditional, ROTH and Coverdell Education Savings Accounts to encourage our members to save money for their retirement. The benefits of investing in an IRA include tax-deferred earnings and in some cases, tax deductibility. Let us help you set up the IRA that's just right for you!

Your Social Security benefits and pension are not intended to provide all of your retirement income. And planning ahead to pay for an education, or to buy a house, or any future goal is always wise. Today's IRAs provide more tax benefits and greater earnings than in previous years. You can choose from taking advantage of yearly tax deductions now, or save your tax breaks for future withdrawals. How you want to pay your taxes determines your IRA choice.

With an IRA, you can open an IRA with as little as $1.00; add-ons are permitted up to the contribution limits set by the IRS. Dividends are paid quarterly. IRS penalties for early withdrawal apply.

IRAs are insured to $100,000 aggregate - separate from the regular share savings account.

Dividend Period:
For this account type, the dividend period is quarterly, for example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is March 31. All other dividend periods follow this same pattern of dates. The dividend declaration date follows the ending date of a dividend period, and for the example above is April 1. If you close your share account before dividends are paid, you will not receive the accrued dividends.

Rate Information:
The dividend rate and annual percentage yield may change every dividend period. We may change the dividend rate for your account as determined by the credit union board of directors.

Compounding and Crediting:
Dividends will be compounded every quarter. Dividends will be credited to your account every quarter.

Average Daily Balance Computation Method:
Dividends are calculated by the average daily balance method which applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is the quarterly statement cycle.

Transaction Limitations:
You may not make any withdrawals or transfers to another credit union account of yours or a third party by means of a preauthorized or automatic transfer, telephonic order or instruction, or similar order to a third party.

IRA Products

A Traditional IRA Share Account is a special savings plan authorized by the Federal Government to help you save money for retirement.

A Roth IRA Share Account allows you to withdraw the amount of your contributions at any time, tax free, and in most cases penalty free.

A Coverdell Education Savings Account focuses on the need for meeting the costs of higher education. Contributions can be made regardless of participation other IRA programs.