IRAs

IRAWe're Your IRA Headquarters!

When it comes to managing your Individual Retirement Accounts, you need an institution you can trust to make the process as easy as possible. At SDPECU, we’re here to help you every step of the way. 

Traditional IRAs

A traditional IRA is a personal savings account that gives you tax advantages* as you save for retirement. Contributions to a traditional IRA may be tax-deductible*, either in whole or in part, depending on your modified adjusted gross income. You can contribute to a traditional IRA for each year you receive compensation up to age 70½ when you’re required to begin withdrawing funds. You can withdraw or use your traditional IRA assets at any time, but those withdrawals will be treated as income for tax purposes and an additional tax penalty may apply unless you have special circumstances such as a death, a disability, qualifying education expenses, or a first-time home purchase.

Roth IRAs
Because Roth IRA contributions are not deductible and have already been taxed as income, you can withdraw your contributions, tax-free, at any time within certain limits -- just as you can withdraw money from a savings account without paying taxes on it. Withdrawals can generally be made without penalty if it has been five taxable years since you first opened the Roth IRA and if the withdrawals are made after age 59½, on account of death or disability, or for a qualified first-time home purchase up to $10,000 (lifetime maximum). If a withdrawal does not meet these requirements, it may be taxable and may also be subject to a penalty if made before age 59½. Unlike the traditional IRA, you may leave assets in a Roth IRA for as long as you live, allowing your money to accumulate tax-free and/or be passed to heirs without taxes.

Coverdell Education Savings Accounts (Coverdell ESA) also available
The Coverdell ESA was created to help people save for the education of a child under the age of 18. The education can be elementary/secondary (k-12) and post-secondary (college, graduate school, vocational school, etc.) Contributions to the account will not be accepted after the designated beneficiary reaches his or her 18th birthday unless the beneficiary has special needs. You may contribute up to $2,000 annually to a child's Coverdell ESA if your modified adjusted gross income is less than $95,000 as a single tax filer, or $190,000 to $220,000 as a married couple filing jointly in the tax year in which you contribute. The $2,000 maximum contribution limit is gradually reduced if your modified adjusted gross income exceeds these limits. Anyone may contribute to a child's Coverdell ESA, as long as his or her income falls within the income guidelines and the total of all contributions for one beneficiary does not exceed the $2,000 limit.
 
SDPECU can help you open a new IRA, transfer an IRA from a different institution, or rollover a retirement plan from a previous employer. We offer high yields and helpful staff to make the process simple. Call (916) 921-5050 ext. 233 and speak with the IRA Representative for more details.

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*Consult a tax advisor to determine tax deductibility.

By members' choice, this institution is not federally insured.