Individual Retirement Accounts (IRAs) provide an excellent way to save for the future. Your earnings are sheltered from taxes—allowing your money to grow faster than funds in an ordinary savings account.

At ETFCU, you'll find all the features you're looking for in an IRA:

  • You'll enjoy great rates on your account.
  • ETFCU IRAs feature no set-up or annual fees.

ETFCU offers three types of IRAs:

  Traditional IRA - Returns on your Traditional IRA investment are tax deferred until you make a withdrawal from the account, at which point you pay taxes on all pre-tax dollars. Traditional IRA accounts are a more flexible retirement savings account, meaning the account can be used for other important life events.
  Roth IRA - The Roth IRA is designed for middle-income members who do not qualify for the Traditional IRA annual tax-deductible contribution, but still want to take advantage of tax-free earnings growth.
  Coverdell Education Savings Account - A Coverdell Education Savings Account can be opened for any child under the age of 18 to fund his or her education. Withdrawals from the account are tax-free if used to pay for primary, secondary, or post-secondary education expenses.

Contributions can be made to your IRA for the previous tax year through the April 15 tax deadline. Contact any ETFCU office for more information. Additionally, self-directed IRAs are available through MEMBERS Financial Services at ETFCU.



New Rules Make Roth IRAs More Attractive in 2010

Unlike Traditional Individual Retirement Accounts (IRAs) that provide a tax-deferred way to save for retirement and have distribution age restrictions, a Roth IRA provides the potential for tax-free savings, qualified distributions are tax free, and there are no required distributions beginning at age 70½. 

The tax laws changed in 2010, and the previous income limits were lifted that prevented some from converting funds from a Traditional IRA or employer-sponsored retirement plan to a Roth IRA. IRA owners who convert in 2010 may also choose to report the conversion income on their 2010 taxes or spread it over 2011 and 2012. We recommend you speak to a tax professional before converting funds.

For more information regarding the new rules for 2010 Roth IRA conversions or IRA contribution limits, contact the ETFCU Investments Department at (812) 477-9271 or 1-800-800-9271, Option 4.

IRAs are separately insured up to $250,000 by the National Credit Union Administration.



IRA Contribution Limits

Qualifying IRA owners may contribute up to $5,000 to a Traditional or Roth IRA for tax year 2010, and IRA owners age 50 or older can contribute an additional $1,000.

Visit any ETFCU location to open or contribute to your IRA today!



Click here to contact a representative from the ETFCU Investments Department.

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