What are my IRA options?

The Credit Union offers both traditional and Roth IRAs.  For those members who need a liquid IRA investment, the Credit Union offers a “Daily IRA.”  This provides for two options.  One is that if you are retired and need to use some of your IRA investment and don’t want to work around maturity dates, you can deposit your IRA money into a Daily IRA and pay tax only on the portion of the money you withdraw from this account. 

The second option would be for the small investor.  If you’d like to start an IRA but don’t have the minimum $250 to open an IRA certificate, ideally, this investor would start a direct deposit into this account and hopefully in the future, convert this account into an instrument that would yield a higher dividend.  The penalty for premature withdrawal from a term IRA is 90 days of interest.

The dividend rate on the daily IRA is .05 bps higher than the rate on regular shares.  The rates and terms for IRA certificates are as follows:

                 Term                         Rate                    APY   

                  18 mo                       0.30%                 0.30%

                  24 mo                       0.30%                 0.30%

                  30 mo                       0.35%                 0.35%

To discuss your IRA options, please email amshinn@research1166fcu.org