Personal
IRA Accounts
IRAs
Planning for retirement is one of the most important things you’ll ever do. And establishing an Individual Retirement Account (IRA) through Holyoke Credit Union can help. We offer both Traditional and Roth IRAs, as well as Coverdell Education Savings Accounts and we can assist you in determining which account best fits your needs. All three accounts offer tax benefits and savings security. Whether you are establishing your first retirement account or moving assets from an existing account, Holyoke Credit Union can walk you through the process and put you on the path to retirement savings.
Traditional IRA
Traditional IRAs keep your accumulated savings tax deferred, making it easier for you to set and achieve long-term financial goals. Although there are some restrictions, most contributions to a Traditional IRA are tax deductible when placed into the account. Your money is subject to income tax when withdrawn. There are no distribution penalties once you've reached the age of 59½, or for certain other qualified reasons, and you must begin taking required minimum distributions at age 73. If you are over age 50, you also have the opportunity to make additional “catch-up” contributions to a Traditional IRA.
Roth IRA
Roth IRAs are an excellent way to save for retirement without having to worry about paying income tax at time of withdrawal. If your money remains in a Roth IRA for a minimum of five years, you pay no income tax when it is withdrawn for a qualified distribution. Qualified distributions include: any contributions made after age 59½, death benefits, first-time homebuyer distributions (up to $10,000.00), and distributions by age73. Contributions to a Roth IRA are not tax deductible when placed into the account. If you are over age 50, you also have the opportunity to make additional “catch-up” contributions to a Roth IRA.
Coverdell Education Savings Account
A Coverdell Education Savings Account is a federal program allowing you to set money aside for higher education expenses. Although contributions to a Coverdell Education Savings Account are not tax deductible, as they are with a Traditional IRA, you pay no taxes or penalties on the accumulated interest when withdrawn. Funds from a Coverdell Education Savings Account must be used for approved expenses including tuition, books, fees, or equipment necessary for higher education enrollment.
