 A Roth IRA is an individual retirement account to which participants are able to make annual non-deductible contributions. Unlike a traditional IRA in which your earnings are tax-deferred, Roth IRA earnings can be tax-free. You may convert your traditional IRA to a Roth IRA, provided you are a Single filer or married couple filing jointly with a modified adjusted gross income that does not exceed $100,000. Any portion of the converted amount attributable to deductible contributions and earnings must be included as taxable income. The entire taxable amount of the conversion must be included as income for the year the conversion is made. To receive more information on Education IRA’s, please contact the Credit Union. Qualified distributions may be withdrawn tax and penalty free. Non-qualified distributions may be taxable and subject to an IRS 10% early distribution penalty. To receive more information on Roth IRA’s, contact the Credit Union. All type IRA’s dividends are calculated by the daily balance method, which applies a daily periodic rate to the balance in the account each day. The Roth IRA dividends are paid quarterly on the last day of the quarter. Withdrawals made before quarter end will not receive a dividend. All IRA accounts are charged a small maintenance annual fee. |
