Individual Retirement Accounts (IRAs)
An Individual Retirement Account (IRA) is a building block for retirement. GPCE Credit Union, a Division of FSU Credit Union offers three types: Traditional, Roth, and Coverdell. Give us a call or stop by one of our branches and ask which account is right for you and how you can make contributions directly into your IRA with payroll deductions or automatic payment.
Due to the complexity of IRAs, you should also plan to consult with a tax professional to make sure you’re making the most of your money.* We cannot provide tax advice regarding IRAs.
All Certificate Accounts are available for IRA Accounts.
HOW DO I SET UP AN IRA?
Technically, an IRA is a personal savings account, set up as a trust or custodial account that you put your investments into. You can establish an IRA with an initial deposit of $5 (interest is earned on accounts of $500.00 and more). When you set up your IRA, you’ll be asked to designate a beneficiary. If you have significant assets or special concerns, consult a tax advisor or estate planning professional to help ensure that your IRA is distributed according to your wishes.
HOW DO I CONTRIBUTE TO MY IRA?
WHAT ARE THE NEW IRA CONTRIBUTION LIMITS?
The annual contribution limit for 2020 is $6,000, or $7,000 if you’re age 50 or older (same as the 2019 limit). The annual contribution limit for 2015, 2016, 2017, and 2018 is $5,500, or $6,500 if you’re age 50 or older. Your Roth IRA contributions may also be limited based on your filing status and income.
WHAT KIND OF INVESTMENTS CAN I MAKE WITHIN MY IRA?
You can invest your IRA money in most types of savings and investments, including CDs (share certificates), mutual funds, annuities, and individual stocks and bonds. Prohibited investments are life insurance and collectibles.
CAN I BORROW FROM MY IRA?
No, IRAs don’t allow loans. Likewise, you can’t pledge your IRA assets as security for a loan. However, contributions to a Roth IRA can be withdrawn at any time, without having to pay taxes or penalties.
*Fees can reduce the earnings on your account.