A Traditional IRA Share Account is a special savings plan authorized by the Federal Government to help you save money for retirement. Any Jessop Community Federal Credit Union member who has earned income is able to open a Traditional IRA Share Account and may contribute up to a maximum of 100% of annual earned income or $3,000, whichever is less. A working spouse who is a Credit Union member may also establish an IRA up to $3,000. Spouses of Credit Union members who are not employed may contribute to a spousal IRA which allows for a total family contribution of $6,000.
Funds from an IRA at another financial institution may be deposited into a Rollover IRA at your Credit Union. This should be done electronically for the quickest and easiest transfer of funds, and to avoid costly IRS penalties.
Dividends on IRA Accounts are paid quarterly on January 1, April 1, July 1, and October 1.
Features of Ordinary IRA Shares include:
- No minimum balance to open or earn dividends
- Dividends are earned on all balances
- No Jessop CFCU penalty for early withdrawal (You may be subject to IRS penalties.)
- Additional deposits up to $3,000 annually may be made at any time (You may start or stop automatic payments at any time.)
- You must be under age 70 1/2 to be eligible for a traditional Nondeductible IRA.
- Non-working spouses can now make fully deductible contributions to an IRA, even if their spouse participates in a retirement program, as long as their joint income does not exceed $150,000.
- You may invest up to $3,000 each year for singles and $6,000 for married couples filing jointly.
- You may be able to withdraw money before age 59 1/2 without a penalty to purchase a first home (up to $10,000 maximum) or pay qualified costs of higher education.
For more information about IRAs, speak to your financial advisor.