Individual Retirement Accounts

A secure retirement begins with an Individual Retirement Account (IRA) from CCCU, no matter what stage of life you’re in. IRAs are a smart and safe way to save for your future. Our Traditional and Roth IRAs are federally insured by the National Credit Union Association up to $250,000.

An IRA could set you free of future stress. With permitted annual contributions at an all-time high, now’s the time to cash in on the earning power of an IRA.

Traditional and Roth IRAs

Annual deposit limits have sprung to $5,000* (2008 and beyond limits).
A Traditional IRA can be opened and funded without any employer participation. Contributions and/or earnings are tax-deferred until retirement. Unlike many employer plans, money in the account is always accessible; however, until age 59 ½, there is a 10% early distribution penalty unless you qualify for an exemption due to one of the following: disability, qualifying education expenses, unemployment, qualifying first-home purchases, death or receipt of your IRA assets in equal payments over your life expectancy.

Roth IRAs differ from Traditional IRAs in that the money you contribute to a Roth IRA has already been taxed, so the principal amount is never subject to taxes or penalties in the future as long as you stay within the contribution guidelines. This retirement plan allows the money you contribute to grow tax-deferred. If you do not withdraw any of the earnings until you have had the plan for at least five years, or satisfy one of the qualifying events, those tax-deferred earnings become tax free. Unlike the Traditional IRA, there is no 70 ½ age limit on making contributions.

Coverdell Education Savings Account (ESA)

Don’t get caught at the last minute paying for education. Save early. Contribution limits are now $2,000* per year, per child under age 18. You may contribute until the student’s 18th birthday. Like the Roth IRA, contributions to the account are not tax deductible but earnings accumulate tax-free. Withdrawals from educational IRAs can be used to pay for tuition, books, supplies and room and board (for full time students).

If a child does not attend college, the money must be withdrawn by the time he or she turns 30. Those earnings are subject to income tax and the 10% penalty. The Coverdell Education Savings Account can also be rolled over without penalty to another member of the family.

Laddered increases in catch-up contributions
If you are 50 or over, you can now contribute an extra $1,000 a year.

Rollover options Are you changing jobs or retiring? Roll your assets from your retirement plan [401(k), 403(b) and 457(b)] into a traditional IRA.

IRA Certificates

Type:  Traditional and Roth

Restrictions:  One annual withdrawal allowed after age 59 ½ without early withdrawal penalty; early withdrawal penalties may apply; penalty withdrawal from certificate prior to maturity as follows:

- 24 month term 60 days dividend
- 36 month term 90 days dividend
- 60 month term 90 days - 60 month term 90 days dividend




24 month
36 month
60 month

Interest:  Paid at maturity

*Rates:  Additional 25 basis points for all rollover contributions from other institutions. Upon maturity, the certificate will renew at the current offering rates. The same guidelines in the Deposit Account Policy would apply to IRA Certificates.

View current Share and IRA Certificate rates.

*You must meet Internal Revenue Code eligibility requirements. The Credit Union provides no legal advice to members and provides the foregoing information from a reliable resource to give our members a basic understanding of these services. You should consult with your tax or legal advisor regarding any particular and the current status of applicable federal and state laws.