As a member of AFCU, you can select from a variety of Individual Retirement Accounts to meet your retirement goals. From Traditional to Roth to Education IRAs, AFCU has the right type of Individual Retirement Account, at a competitive rate, to satisfy your specific needs. Rollovers from other financial institutions and direct transfers from qualified retirement plans are welcome.

AFCU members have a choice of IRA Certificates or IRA Savings Accounts and our finance experts can help you choose the best option for your goals.

IRA Certificates

Minimum $500 deposit with terms ranging from 6 to 60 months and quarterly compounding of interest. As with Share Certificates, early withdrawal penalties apply on IRA Certificates as well and fees charged may reduce earnings. However, AFCU waives its early withdrawal penalties for members over the age of 59½.

IRA Savings Accounts

The IRA Savings allows for accumulation of annual contributions through regular deposits, Payroll Deduction, or Direct Deposit, and pays a quarterly dividend. There is no annual fee or minimum deposit required.

Qualifications for investing in IRAs are regulated by the IRS. Your tax consultant or advisor should assist you in determining your eligibility to invest in an IRA. Call or visit the Credit Union Financial Services Department to establish your Individual Retirement Account or to conduct Rollovers and Direct Transfers. Check out our Credit Union’s Rates and Fees.

What is a Traditional IRA?

A Traditional IRA is a form of retirement plan that has been in existence since 1975. A Traditional IRA offers tax-deferred earnings as well as the possibility for tax deductible contributions. These tax advantages have strict eligibility requirements based on income, filing status, and availability of other retirement plans (mandated by the Internal Revenue Service). Transactions in the account, including dividends are not subject to tax while still in the account, but withdrawals from the account are taxable.

With a Traditional IRA:

  • Earnings are tax-deferred
  • Contributions may be tax-deductible
  • The amount you may contribute is increasing
For more info about our Traditional IRAs, contact AFCU.

What is a Roth IRA?

A Roth IRA is an individual retirement account created in 1997 by the Taxpayer Relief Act. Unlike traditional IRAs, contributions are never tax-deductible. Money in your Roth IRA, including earnings, may be withdrawn tax-free. Of course, you must meet all plan provisions to get this tax-free advantage.

With a Roth IRA:

  • Contributions may be made at any age
  • Qualified withdrawals are tax-free
  • The amount you may contribute is increasing
For more info about our Roth IRAs, contact AFCU.

What is an Educational IRA?

In 1997 the Taxpayer Relief Act created the Education IRA, now known as the Coverdell Educational Savings Account (ESA). An Educational IRA has the sole purpose of assisting you with paying for your child’s education expenses such as: tuition, fees, books, supplies, and in some cases, room and board and computers. Unlike the Traditional IRA contributions to a Coverdell ESA are never tax deductible. Coverdell ESAs offer you the potential of tax-free withdrawals – including earnings.

With a Coverdell ESA:

  • Coverdell ESAs may be used to pay for qualified elementary and secondary education expenses.
  • Dividends grow tax-free if distributions are used for qualified education expenses.
For more info about our Educational IRAs, contact AFCU.