Individual Retirement Account (IRA)
You can open an IRA for as little as $100, with flexible plans that give you the power to choose how and when you save. The following Neighborhood Credit Union accounts are covered up to $250,000 by the NCUA. Our IRA options include:
Penalty-free withdrawals before age 59 for first-time home purchases or to pay for qualified higher education expenses. Contributions are tax deductible if you are single, or married and neither spouse is an active participant in a qualified retirement plan, regardless of income. If either of you are an active participant, you may deduct contributions only if your income is below certain limits.
Earnings grow tax-free on after-tax contributions, and can be withdrawn penalty-free for a first-time home purchase, higher education expense, medical expenses, in the event of your death or permanent disability, or if you are at least 59 ½ years of age.
Coverdell Education IRA
Formally known as Education IRAs, these accounts let families put away $2,000 per beneficiary, per year and use the money tax-free to pay for college expenses.* You can now use Coverdell funds to pay for elementary or secondary education costs. There are income restrictions to make full contributions to a Coverdell account $95,000 for a single filer and $190,000 for married couples filing jointly.
Each type of IRA can be deposited to a share savings account or certificate.
If you are interested in opening an IRA, please contact Neighborhood Credit Union directly at 800.321.3728 or 214.748.9393 or stop by the branch closest to you.
*See tax adviser for information.