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IRAs

What is your path?

An IRA is a special type of savings plan that helps you save for retirement or for your child’s education. IRA’s are still one of the smartest retirement investments available.  IRA’S are a secure way to save for the future, require little administration, and are easy to set up. Whether retirement is in your near future or still years away, CBI FCU offers a number of ways to help you establish and manage a healthy retirement program- something that is important for everyone.  

Traditional IRA

A CBI FCU Traditional IRA offers tax-advantaged retirement savings in which earnings accumulate tax–deferred, contributions may be fully or partially tax deductible, and maximum contribution limits may increase annually. Choose an IRA Certificate of Deposit or an IRA Savings account. We're here to make retirement savings simple. All funds are insured by NCUA up to the maximum allowed by law.

Eligibility 

  • Contributor must be under 70½ and have earned taxable income for the year or a spouse with earned income.
  • Rollovers or transfers from other plans can be made even if the IRA owner is 70½ or older

Contribution Limits

  • $5,500 for the year 2017 or 100 percent of taxable compensation, whichever is less
  • No more than $5,500 total can be contributed to Traditional and Roth IRAs in 2017
  • For members 50 years or older, a $1,000 "catch-up contribution" is allowed for the year 2017
  • Eligibility and deduction limits may apply, based on your Adjusted Gross Income (AGI). Contact your tax advisor for details

Withdrawal Guidelines

  • A contributor must begin to withdraw funds at age 70½
  • IRS penalty-free withdrawal events include:
    • Reaching age 59½
    • Incurring a disability
    • Buying a first home ($10,000 lifetime cap)
    • Other qualifying expenses include education and medical needs

Withdrawals may have additional penalties. Always consult your tax advisor.

ROTH IRA

With a Roth IRA from CBI FCU, you make after-tax contributions and your earnings accumulate tax-free. All qualified distributions are entirely tax-free, and there's no age limit: you can contribute as long as you have earned income and meet Adjusted Gross Income (AGI) requirements. Choose an IRA Certificate of Deposit or an IRA Savings account. We're here to make retirement saving simple.

Contribution Limits 

  • $5,500 for the year 2017 or 100 percent of taxable compensation, whichever is less.
  • No more than $5,500 total can be contributed to Traditional and Roth IRAs in 2017.
  • For members 50 years or older, a $1,000 "catch-up contribution" is allowed for the year 2017.
  • Eligibility and deduction limits may apply, based on your Adjusted Gross Income (AGI). Contact your tax advisor for details.

Withdrawal Guidelines

  • No minimum distributions are required at age 70½. You can leave the account intact for heirs. It will continue to grow tax-free.
  • IRS penalty-free withdrawal for amounts withdrawn after 5 years if one of the following occurs:
    • Reach the age of 59½
    • Buying a first home ($10,000 lifetime cap)
    • Disability
    • Death

Withdrawals may have additional penalties. Always consult your tax advisor.

COVERDELL EDUCATION SAVINGS ACCOUNT (ESA)

A Coverdell Education Savings Account provides convenient tax-advantaged savings for elementary school, high school or higher education expenses. Earnings accumulate tax-free, and all distributions are completely tax-free when used for qualified expenses such as tuition, room and board, fees, supplies, tutoring, special needs services-even educational computer equipment and internet access. You can roll unused balances into another education savings account to benefit another family member. CBI FCU’s Coverdell Educational Savings account is insured by the NCUA. We're here to make saving for education simple.

Eligibility

  • Designated beneficiary (child) must be under the age of 18
  • Contributors may be individuals (parent, grandparent, aunt, uncle, etc.) or entities (non-individuals)
  • Individual contributors must meet certain income thresholds based on Modified Adjusted Gross Income (MAGI)
  • Consult your tax advisor 

Contribution limits

  • Annual after-tax contribution of up to $2,000 per designated beneficiary under the age of 18
  • Beneficiaries with special needs may receive funding contributions after age 18

Withdrawal Guidelines

  • IRS penalty-free distributions for: primary, secondary, technical, college, or post-graduate education expenses for the designated beneficiary

Withdrawals may have additional penalties. Always consult your tax advisor.