Individual Retirement Accounts
Individual Retirement Accounts are more popular than ever

A solid, diversified financial plan for retirement is one of the keys to happiness and comfort later in life. Don't wait to start planning for your retirement… it isn't too soon or too late! Carter Federal offers IRAs to fit your particular financial profile or needs.

An Individual Retirement Account (IRA) - is a good way to save for retirement. The Traditional and Roth IRAs are offered as savings accounts or as Certificate accounts. A certificate IRA will earn the same as a regular Share Certificate and is subject to the same qualifications and penalties. Carter Federal Credit Union offers the Traditional IRA, the Roth IRA and the Coverdell Education Savings Account.

Traditional IRA – Many taxpayers enjoy partial or full tax deductibility on Traditional IRA contributions. Even if contributions do not qualify for tax deductibility, the dividends earned are tax-deferred until IRA funds are withdrawn.

• Withdrawal can be made at age 59 ½ without penalty
• Must begin to make withdrawals at 70 ½
• Withdrawals made prior to age 59 ½ may be penalized by the IRS
• Contributions may be tax deductible
• Contributions may be made up to age 70 ½
• Previous years deposits are acceptable up to April
  
  Some contributions are tax deductible depending on adjusted gross income and filing status. Contributions accumulate tax-free until you withdraw the money from the account.

For more information, please contact the credit union.

Roth IRA – Contributions to a Roth IRA are not tax deductible. Contributions may be withdrawn tax and penalty free at any time. Earnings are tax free if account is opened for five tax years and withdrawn for a qualified reason.

• Contributions may be withdrawn at any time without penalty
• Earnings may be withdrawn without penalty if it is a “qualified distribution”
• No age limits for contributions as long as they qualify
• Contributions are not tax deductible
• Earnings have the potential to be tax free
• Previous years deposits are acceptable up to April 15th or final tax filing date for the year.

For more information, please contact the credit union.

Coverdell Education Savings Account –The Coverdell Education Savings Account was created to help parents save for qualified education expenses for a child. Withdrawals are tax and penalty free only for qualified educational expenses. Funds may be transferred for one child’s account to another child within the family.

• Contributions are not tax deductible
• Earnings are tax free if used for education expenses of the child
• Child is “designated beneficiary”
• Account must be established before child is 18
• Account is in the name and SS# of child
• Funds in the account are controlled by the “responsible individual”

For more information, please contact the credit union.