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There is a proper time to start thinking about retirement: now. That holds true at any age, young or...um...not so young. eDCU offers traditional and Roth IRAs, as well as Coverdell ESAs, so you can save the way you want. Rest easier with competitive dividends and unique tax advantages.* Do your future self a favor — open your IRA today!

Details
  • Competitive dividends above standard savings rates
  • Traditional and Roth IRA and Coverdell ESA options available
  • No setup fees
  • $5,500 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase eDCU IRA CDs
  • $250 minimum deposit to open
  • Federally insured to $250,000 by NCUA

*Consult a tax advisor.

Traditional vs. Roth IRA

There are advantages to both traditional and Roth IRAs. One of the biggest differences is the time at which you see the most advantage. A traditional IRA provides potential tax relief today, while a Roth IRA has the potential for the most tax benefit at time of retirement.

Traditional IRA

  • Must have earned income and will not reach age 70½ by the end of the year to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax1
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty2
  • Mandatory withdrawals at age 70½

Roth IRA

  • Income limits to be eligible to open Roth IRA3
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal1
  • Principal contributions can be withdrawn without penalty1
  • Withdrawals on interest can begin at age 59½
  • Early withdrawals on interest subject to penalty2
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income
1Subject to some minimal conditions. Consult a tax advisor.
2Certain exceptions apply, such as healthcare, purchasing first home, etc.
3Consult a tax advisor.
Coverdell ESA

College can be a time for growth and learning. Unfortunately, building debt is often part of that equation too. But establishing a Coverdell Education Savings Account (formerly called an Education IRA) for a beneficiary is a great way to help avoid that last part.

  • Set aside funds for your child's education
  • Dividends grow tax-free
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses1
  • Designated beneficiary must be under 18 when contributions are made
  • To contribute to an ESA, certain income limits apply2
  • Contributions are not tax deductible
  • $2,000 maximum annual contribution per child
  • The money must be withdrawn by the time he or she turns 303
  • The ESA may be transferred without penalty to another member of the family
  • $250 minimum deposit to open
1Qualified expenses include tuition and fees, books, supplies, board, etc.
2Consult your tax advisor to determine your contribution limit.
3Those earnings are subject to income tax and a 10% penalty.

$35 yearly maintenance fee if combined IRA balances at year end is less than $1000. $25 IRA closure fee.