Individual Retirement Accounts
You can Invest for your future today!
IRA Share Savings
You can open your IRA savings account today. There is no mimimum required to open this sub-account. As with any savings account, you may add to it at your convenience. You may also elect to make contributions in connection with your direct deposit. Your retirement funds will be available at age 59 1/2 with no penalty. If you need your money sooner, you may withdraw it with no penalty from WCCU, but you will have a penalty of 10% from the U.S. Government.
This type of IRA is more attractive than ever because expanded income limits mean more people than ever will be able to make tax-deductible contributions. In addition, penalty free withdrawals are allowed for such purposes as qualified higher-education expenses and a first-time home purchase.
Roth and Educational IRAs
Contributions are not tax deductible, but the accounts offer the opportunity for tax-free earnings. Both the Roth and Educational IRAs are available for married couples with a household income below $150,000 and single tax filers with a household income less than $95,000. Most importantly, individuals will have the opportunity to roll Traditional IRA assets into a Roth IRA.
Distributions from the new Roth IRA which are held for at least five years are tax-free but must be used for a qualified purchase. Qualified distributions from a Roth IRA include those made for a first home (up to $10,000), age 59½, death and disability.
Distributions from the new Education IRA which held for at least five years are tax-free, but must be used for qualified higher education expenses such as books, supplies, and equipment required for enrollment at colleges and vocational schools. Contributions are limited to $500 per year and are only available to children under 18 years of age.
IRA Certificate of Deposit
An IRA CD can be yours with a minimum investment of $500. You may invest your funds for varying lengths of time – from 6 months to 4 years. Interest rates will vary depending on the duration of your investment. There are penalties for early withdrawal. The U.S. Government requires the standard 10% and WCCU will assess the most recent three months’ interest. The benefit of IRA CDs over the IRA Share account is that the CDs generally receive a higher interest yield.