Individual Retirement Accounts

An Individual Retirement Account (IRA) is a tax-sheltered savings account used to gather funds for a future purpose. In most cases, the purpose is to supplement other forms of retirement income or to be the sole retirement account for a self-employed individual. In other cases, the purpose is education or a home purchase. In any situation, an IRA is a safe way to save for your future. Credit Union of Dodge City offers three different types of IRA's: Traditional, Roth and Coverdell Education Savings.

Traditional IRA

Up to $4,000.00 can be contributed to this IRA annually. Contributions to this IRA may be fully tax deductible if you meet certain requirements. Income Tax on the IRA may be deferred until the age of 70 1/2. When the age of 70 1/2 is reached, Required Minimum Distributions (RMD) must be taken out.

Roth IRA

Up to $4,000.00 can be contributed to this IRA annually. Contributions to this IRA are not tax deductible. Individuals are not required to receive minimum distributions after age 70 1/2 and can continue to contribute to the IRA after they reach age 70 1/2. If you meet all requirements, distributions may be tax and penalty free.

Coverdell Education Savings Account (formerly know as "Education IRA") - Up to $2,000.00 can be contributed to this account annually. This account is opened on behalf of a child under the age of 18. Similar to the Roth, contributions are not tax deductible. This account can only be used for education expenses. When the child turns eighteen years old, no more contributions can be made to the account. This account must be closed by the time the individual reaches age 30. If all the funds have not been used, they may be rolled over to another qualifying beneficiary.

Stop by today to explore your IRA options.

Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government by National Credit Union Administration (NCUA), a U.S. Government Agency.