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IRAs

Build today for a secure tomorrow.

Take advantage of this tax-deferred way to save - The Credit Union offers a variety of term levels.

What is an IRA?

An individual retirement account (IRA) is a great way to save for your retirement and reduce your tax bill as well. There are two types of IRAs to choose from, and it’s important to determine which one is right for you.

A traditional IRA

  • Allows contributions (as long as you have earned income) up to age 70½
  • Requires distributions to begin by age 70½
  • Provides a current tax deduction for eligible participants
  • Allows investment earnings to grow tax-deferred.

    A Roth IRA

  • Permits contributions as long as you have earned income
  • Does not require distributions to begin by a certain age
  • Can be passed along to heirs
  • Allows investment earnings to grow tax-deferred.

    New for 2010: Converting your Traditional IRA to a Roth IRA
    Federal regulation changes for 2010 will now allow those who own Traditional IRAs to convert to a Roth IRA, regardless of income level or marital status. You’ll also need to consider other important factors such as taxes, time, and costs.

    For more information, we invite you to review our library of frequently asked questions. You can also contact one of our Financial Advisors¹ at BCU Investment Advisors to convert your Traditional IRA to a Roth IRA.

    How much can I contribute each year?
    As of 2009, a maximum of $5,000 of earned income may be contributed each year by individuals, or if you’re 50 and older, $6,000. Allowances for contributions made on behalf of a spouse that does not have earned income may also be available.

    Are my contributions tax-deductible?
    The deductibility of your annual contribution depends on your income, marital status and whether you and your spouse receive benefits under an employer's retirement plan. For those who are active participants in an employer plan, the ability to fully deduct contributions is limited.

    Learn more in our Financial Resource Center. For more complete information on IRAs, you can refer to the IRS Publication 590 or talk to a financial tax professional.

    To open a new IRA:

  • Visit our IRA Web site
  • Contact Member Relations at  800-388-7000
  • Visit your local service center

    ¹Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (Member FINRA/SIPC) and Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. BCU has contracted with CFS to make non-deposit investment products and services available to credit union members. BCU Investment Advisors is a trade name for the investment services available at BCU.