Jeanne D'Arc Credit Union

IRAs

An Individual Retirement Account (IRA) is a special, tax-favored savings plan authorized by the Federal Government to help you build a personalized retirement fund.

In addition, we offer other types of tax-favored savings plans that allow you to fund future educational needs (Coverdell Education Savings Account) and to assist your employees in building their retirement funds (Simplified Employee Pension Plan).

Whether you’re planning your retirement, saving for education or assisting your employees to secure their future, Jeanne D’Arc has a plan tailor-made to get your there.

Plans offered include:

  • Traditional IRA

    When you contribute to a Traditional IRA, you won’t pay taxes on earnings until you start making withdrawals. When you open a Traditional IRA, you may get immediate tax benefits.

    • Must be employed to contribute to an IRA and under age 70½
    • Maximum contribution for tax year 2017 is $5,500.00 for people under age 50, and $6,500.00 for people 50 and over
    • Contributions may be tax deductible depending on income and if participant is in a workplace retirement plan
    • Earnings grow tax deferred
    • Withdrawals are taxable as “income” and may be subject to a 10% early withdrawal penalty by the IRS if withdrawn prior to attaining age 59½
    • Required minimum distributions begin at age 70½
    • Jeanne D’Arc Credit Union offers IRA Statement Savings Accounts, IRA Money Market Savings Accounts or IRA Certificates of Deposit for your retirement savings
  • Roth IRA

    Roth IRAs are similar to Traditional IRAs except that contributions are made from your after-tax earnings.

    • Must be employed to contribute to an IRA; no maximum age limit
    • Maximum contribution for tax year 2017 is $5,500.00 for people under age 50, and $6,500.00 for people 50 and over
    • Contributions are not tax deductible
    • Earnings grow tax deferred and may be tax free upon withdrawal if eligibility requirements are met
    • No required distributions
    • Funds must remain in a Roth IRA for five years; participants must be age 59½ or older or meet exception requirements for withdrawal to be tax free
    • Jeanne D’Arc Credit Union offers IRA Statement Savings Accounts, IRA Money Market Savings Accounts or IRA Certificates of Deposit for your retirement savings
  • Coverdell Education Savings Account (CESA)—formerly Education IRA

    Coverdell Educations Savings Accounts (CESA) were created to help parents and students save for anticipated education expenses.

    • Does not require earned income to contribute; however, if member does earn income in must be within IRA guidelines (refer to IRS Pub. 590)
    • Maximum contribution per child (age 18 or younger) per tax year is $2,000.00
    • Contributions are not tax deductible
    • Withdrawals are tax free if used to pay for qualified education expenses
    • All funds in a Coverdell ESA must be distributed to the designated beneficiary by 30 days after attaining age 30
    • Jeanne D’Arc Credit Union offers IRA Statement Savings Accounts, IRA Money Market Savings Accounts or IRA Certificates of Deposit for your retirement savings
  • Simplified Employee Pension (SEP) IRA

    A Simplified Employee Pension (SEP) IRA is established by an employer for employees and can be a significant source of retirement income.

    • Must be self-employed or work for someone who is
    • Employer must make contributions for all eligible employees
    • Union employees, non-resident aliens or employees who received $600.00 or less in compensation during the year may be excluded from eligibility
    • Contributions made are based on the first $270,000 for 2017 of compensation
    • The same percentage of compensation must be contributed for all eligible employees
    • Contributions limited to the lesser of $54,000.00 or 25% of compensation for tax year 2017
    • Contributions to a SEP IRA are made only by the employer and are a tax deduction only for the employer
    • Contributions can be made up to the employer’s tax filing deadline which could be up to October 15 of the tax year
    • Each employee is always 100% vested in all contributions made to his or her SEP IRA
  • Transfers & Rollovers

    There are two ways to move your IRA funds.

    • A Trustee Transfer which is done between financial institutions, with the paperwork being initiated by the receiving financial institution. This is not a reportable transaction to the IRS.
    • A Rollover which is initiated by the individual, who makes a withdrawal by check from one IRA and deposits the funds into another IRA elsewhere within the 60 calendar day time limit. The IRS imposes a restriction of one rollover per individual per 365 days. This is a reportable transaction to the IRS and must be indicated on your tax return for the year in which the Rollover is processed. We can assist you with these transactions.

    The best way to move funds from a former employer retirement plan into an IRA is by a Direct Rollover which is initiated by the individual through the company who manages the 401(k), 403(b), 457 or Profit Sharing or Money Purchase plans. We can assist you with completing the paperwork.

Retirement & IRA investment options:

  • IRA Savings Accounts
  • IRA Money Market Savings Accounts
  • IRA Certificates of Deposit

Please consult a tax advisor to determine how Federal, State and Local tax laws affect your deductibility and what plan is best for your needs.

Still Have Questions?
To open any IRA account, contact our Retirement Plans Manager, Louise Carvalho by email Louise.Carvalho@jdcu.com or call 978-323-4922.