Appalachian Community Federal Credit Union offers Traditional, Roth, and Coverdell Education Savings Account, formally known as Education IRAs, to help our members save for their retirement and qualified education expenses. Click here to see our current IRA rates. The benefits of investing in an IRA include tax-deferred earnings and in some cases, tax deductibility. Please consult your tax adviser for additional details regarding tax deductibility. Let us help you set up the IRA that's right for you!
A TRADITIONAL IRA allows the owner to defer taxes on their earnings until the funds are withdrawn. To make tax-year contributions to a TRADITIONAL IRA, you must be younger than 70 1/2 for the entire year and have earned income. You can put up to $4,000* per calendar year and $4,500 if over age 50 into a TRADITIONAL IRA . Once you reach the age of 70 1/2, you must begin to withdraw the funds.
A ROTH IRA has some advantages over a Traditional IRA. Earnings grow tax FREE. Tax FREE withdrawals are permitted for certain reasons if the account has been open at least 5 years, and there is no maximum age requirement to start distributions from this account. You can put up to $4,000* per calendar year and $4,500 if over age 50 into a ROTH IRA .
COVERDELL EDUCATION SAVINGS ACCOUNT permits you to save for your children's upcoming educational expenses. The contribution is not tax deductible but the earnings grow tax FREE and there is no penalty on money withdrawn for qualified higher education expenses before your child reaches age 30. You can put up to $2000 per calendar year per child into an COVERDELL EDUCATION SAVINGS ACCOUNT.
*This limit is an aggregate total of all of an owner's Traditional and Roth IRAs.
