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:

  • Retirement IRA Savings Account

    The IRA/Retirement Savings Account is a statement account that carries a variable rate of interest. This IRA Savings Account is available for all of our IRA products: Traditional, Roth, Coverdell Education or SEP. You can also use this account to consolidate your IRA investments. As your IRA CDs mature, you can have us transfer each CD into your IRA Savings Account.

  • Traditional IRA

    When you contribute to a Traditional IRA, you won’t pay taxes on earnings until you start making withdrawals, which must begin at age 70½. And when you open a Traditional IRA, you may get immediate tax benefits. For 2015 and 2016, your total contributions to all of your Traditional and Roth IRAs cannot be more than $5,500 ($6,500 if you are 50 or older).

  • Roth IRA

    Roth IRAs are similar to Traditional IRAs, except that contributions are made from your after-tax earnings. After holding your Roth IRA for a minimum of five years and upon reaching the age of 59½, all Qualified withdrawals are tax free; non-Qualified withdrawals may be taxed on earnings. For 2015 and 2016, your total contributions to all of your Traditional and Roth IRAs cannot be more than $5,500 ($6,500 if you are 50 or older).

    Amount of Roth IRA Contributions That You Can Make for 2015:
    (This table shows how your total contribution is affected by your modified Adjusted Gross Income (AGI) as computed for Roth IRA purposes.)

    Amount of Roth IRA Contributions That You Can Make for 2015
    If your filing status is… And your modified AGI is… Then you can contribute…
    married filing jointly or qualifying widow(er) < $183,000 up to the limit
    > $183,000 but < $193,000 a reduced amount
    >  $193,000 zero
    married filing separately, and you lived with your spouse at any time during the year < $10,000 a reduced amount
    > $10,000 zero
    single, head of household, or married filing separately and you did not live with your spouse at any time during the year < $116,000 up to the limit
    > $116,000 but < $131,000 a reduced amount
    > $131,000 zero

    Amount of Roth IRA Contributions That You Can Make for 2016:
    (This table shows how your total contribution is affected by your modified Adjusted Gross Income (AGI) as computed for Roth IRA purposes.)

    Amount of Roth IRA Contributions That You Can Make for 2015
    If your filing status is… And your modified AGI is… Then you can contribute…
    married filing jointly or qualifying widow(er) < $184,000 up to the limit
    > $184,000 but < $194,000 a reduced amount
    > $194,000 zero
    married filing separately, and you lived with your spouse at any time during the year < $10,000 a reduced amount
    > $10,000 zero
    single, head of household, or married filing separately and you did not live with your spouse at any time during the year < $117,000 up to the limit
    > $117,000 but < $132,000 a reduced amount
    > $132,000 zero
  • Coverdell Education Savings Account (CESA)—formerly Education IRA

    A Coverdell Education Savings Account (CESA), formerly an Education IRA, was created to help parents and students save for anticipated education expenses. Contributions (not more than $2,000 per year) are not deductible, but amounts deposited into the account grow tax deferred. The student will not owe tax on the distributions if they are less than the student’s qualified education expenses at an eligible institution.

  • Simplified Employee Pension (SEP) IRA

    For business owners, there’s the Simplified Employee Pension (SEP) IRA. Essentially a Traditional IRA, a SEP IRA is established by an employer for employees and can be a significant source of retirement income. Employer contributions can be up to 25% of an employee’s annual salary, and the employee is always 100% vested in the money.

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.